ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 1:

  Click on the Detail Button to view the Formula Sheet. You are quoting forward FX prices to a broker subject to finding a counterparty for a matching transaction. The Model Code says:

  A. You must tell the broker, who must qualify your quotes.
  B. For credit reasons, you must tell the broker when he presents a name.
  C. You cannot do this.
  D. The Model Code does not make recommendations on this subject.
  A. You must tell the broker, who must qualify your quotes.

• Question 2:

  Click on the Detail Button to view the Formula Sheet. What are IMM dates?

  A. The 10th of March, June, September and December.
  B. The third Wednesdays of January, April, July and October.
  C. The Mondays before the third Wednesdays of March, June, September and December.
  D. The third Wednesdays of March, June, September and December.
  D. The third Wednesdays of March, June, September and December.

• Question 3:

  Click on the Detail Button to view the Formula Sheet. A CD with a face value of EUR10 million and a coupon of 3% was issued at par for 182 days and is now trading at 3.10% with 120 days remaining to maturity. What has been the capital gain or loss since issue?

  A. -EUR 52,161.00
  B. +EUR 47,839.00
  C. -EUR 3,827.67
  D. Nil
  C. -EUR 3,827.67

• Question 4:

  Click on the Detail Button to view the Formula Sheet. The Committee for Professionalism strongly recommends intra-day oral deal checks to help reduce the number and size of differences, particularly when dealing through voice-brokers, for deals involving foreign counterparties, in faster moving markets such as FX and when dealing in other instruments which have very short settlement periods. This checking should:

  A. Be carried out at least three times a day.
  B. Be agreed between the parties.
  C. Be done at the end of each day.
  D. Be decided by the broker.
  B. Be agreed between the parties.

• Question 5:

  Click on the Detail Button to view the Formula Sheet. Which of the following are transferable instruments?

  A. Eurocertificate of deposit
  B. US Treasury bill
  C. CP
  D. All of the above
  D. All of the above

• Question 6:

  Click on the Detail Button to view the Formula Sheet. You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced that the story is true, but have a friend at another bank who you know has very large exposures to this firm and would be seriously damaged by a default. What advice does the Model Code give?

  A. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should not be passed on in any circumstances.
  B. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be discussed only with great care.
  C. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be reported to the regulator in order to provide warning of possible systemic problems.
  D. You have a duty to warn counterparties but should make clear that the information is unsubstantiated.
  B. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be discussed only with great care.

• Question 7:

  Click on the Detail Button to view the Formula Sheet. The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75-80%. As collateral, you are offered EUR25 million nominal of the 5.5% OAT April 2006, which is worth EUR 28,137,500. If you impose an initial margin of 1%, the Repurchase Price is:

  A. EUR 27,947,276.43
  B. EUR 27,946,077.08
  C. EUR 27,950,071.43
  D. EUR 27,948,871.97
  D. EUR 27,948,871.97

• Question 8:

  Click on the Detail Button to view the Formula Sheet. A futures clearing house is:

  A. The buyer to each seller and the seller to each buyer
  B. A clearing agent only
  C. The self-regulatory organisation for the futures exchange
  D. The owner of the futures exchange
  A. The buyer to each seller and the seller to each buyer

• Question 9:

  Click on the Detail Button to view the Formula Sheet. In case of a default on a repo by the seller:

  A. The buyer can liquidate the collateral
  B. The buyer has to liquidate the collateral
  C. The buyer cannot liquidate the collateral until the seller is declared insolvent
  D. A court is appointed to decide what happens to the collateral
  A. The buyer can liquidate the collateral

• Question 10:

  Click on the Detail Button to view the Formula Sheet. What is meant by "short dates"?

  A. Maturities of less than one week.
  B. Maturities of less than one month.
  C. Maturities of less than one year.
  D. Maturities in the same calendar month.
  B. Maturities of less than one month.