ACI ACI Certifications 3I0-012 Questions & Answers

• Question 661:

  If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, the correct value date will be:

  A. the value date of the financial centre that is open

  B. the next business day of the financial centre which is closed

  C. the next business day when both New York and Tokyo are open

  D. the previous business day when both New York and Tokyo are open

  Correct Answer: C

• Question 662:

  You request use of funds from your agent bank for 1 day on an amount of EUR 100,000,000.00, EONIA was 0.812% and the ECB deposit facility rate is 0.50%. What use of funds settlement amount should you expect?

  A. EUR 1,388,89

  B. EUR 1,561.11

  C. EUR 2,255.56

  D. EUR 2,951.39

  Correct Answer: B

• Question 663:

  How long does the Model Code recommend that tapes and other records of dealers/brokers be kept?

  A. at least two months

  B. one year

  C. up to one month

  D. at least three months

  Correct Answer: A

• Question 664:

  What is the meaning of "under reference" in the terminology of trading?

  A. a term the quoting dealer uses to caution the receiver of the quote that the price may have to be re-quoted at the receiver's risk

  B. the qualification that the rate quoted in the market may no longer be valid and requires confirmation before any trades can be agreed upon

  C. the statement that the rates quoted by the broker are for indication only

  D. an acknowledgement by the dealer receiving the quote that the rate may have to be re-quoted at the receiver's risk

  Correct Answer: B

• Question 665:

  What ought to be done in the event a trade erroneously occurs at an off-market rate?

  A. By agreement between the two counterparties, the trade must be cancelled as soon as practically possible since a rate amendment is prohibited.

  B. By agreement between the two counterparts, the trade should, as soon as practically possible, either be cancelled or have its rate amended to an appropriate market rate.

  C. The off-market rate should be adjusted as soon as possible to the appropriate current market rate and a new authenticated SWIFT confirmation sent immediately to the counterparty.

  D. Nothing need be done, since once a trade is agreed to by the front office it is a binding agreement for both counterparties.

  Correct Answer: B

• Question 666:

  A broker offers a dealer a financial incentive in the form of a price reduction to the previously agreed brokerage arrangements between the firms.

  A. This is considered as a normal discount for bulk business.

  B. The offer should be agreed only by directors or senior management on each side and should be recorded in writing.

  C. The offer should be expressly approved by both the individuals concerned and clearly recorded in writing.

  D. The Model Code strongly discourages such practices.

  Correct Answer: B

• Question 667:

  Which of the following statements is true?

  A. Prices quoted by brokers should be taken to be firm in marketable amounts unless otherwise qualified

  B. Prices quoted by brokers should be taken to be indicative in marketable amounts unless otherwise qualified

  C. Prices quoted by brokers should be taken to be firm in amounts of 1,000,000.00 of the quoted currency unless otherwise qualified

  D. Prices quoted by brokers should be taken to be indicative in amounts of 1,000,000.00 of the base currency unless otherwise qualified

  Correct Answer: A

• Question 668:

  When banks transact FX swaps, the spot price should be determined:

  A. anytime after the swap is transacted

  B. before the swap is transacted

  C. immediately after the swap is transacted

  D. no less than 24 hours after the completion of the swap

  Correct Answer: C

• Question 669:

  Responsibility for the activities of all personnel engaged in dealing (both dealers and support staff) for both principals and brokers lies with:

  A. the market supervisor

  B. the national ACI association

  C. the management of such organizations

  D. the central bank

  Correct Answer: C

• Question 670:

  Which Greek letter is used to describe the ratio of change in the option price compared with change in the price of the underlying instrument, when all other conditions are fixed?

  A. beta

  B. gamma

  C. delta

  D. theta

  Correct Answer: C