ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 91:

  Click on the Detail Button to view the Formula Sheet. The two-week repo rate for the 5.25% bund 2007 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000 with no initial margin. You would earn repo interest of:

  A. EUR 349,806
  B. EUR 344,632
  C. EUR 319,315
  D. EUR 324,110
  B. EUR 344,632

• Question 92:

  Click on the Detail Button to view the Formula Sheet. It is now permissible in most markets for brokers to be owned by banks and other principals. Where there is shared management, or a shareholding or other investment in a broker by a counterparty:

  A. The broker is not obligated to reveal the connection provided Chinese Walls are in place.
  B. The broker is not obligated to reveal the connection in the professional market.
  C. The broker should advise the other counterparty of the connection.
  D. The matter is covered in the Model Code.
  C. The broker should advise the other counterparty of the connection.

• Question 93:

  Click on the Detail Button to view the Formula Sheet. Dealers should not conduct dealing activities outside the bank unless:

  A. Clear written guidelines issued by management are in place.
  B. They are in an approved brokers office.
  C. There are on holiday.
  D. None of the above.
  A. Clear written guidelines issued by management are in place.

• Question 94:

  Click on the Detail Button to view the Formula Sheet. Where internet trading facilities are established by a bank for a client, the conditions and controls should be stated in a rulebook produced by:

  A. The bank.
  B. The local bankers association.
  C. The local regulator.
  D. Negotiation between the bank and client.
  A. The bank.

• Question 95:

  Click on the Detail Button to view the Formula Sheet. You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10 million interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 4.95%. How would you hedge the swap using FRAs? How to hedge an IRS with a strip of FRAs?

  A. buy a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
  B. sell a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
  C. buy a strip of 6x12, 12x18 and 18x24 FRAs
  D. sell a strip of 6x12, 12x18 and 18x24 FRAs
  D. sell a strip of 6x12, 12x18 and 18x24 FRAs

• Question 96:

  Click on the Detail Button to view the Formula Sheet. In GBP/CHF, you are quoted the following prices by four different banks. You are a buyer of CHF. Which is the best quote for you?

  A. 2.3840
  B. 2.3843
  C. 2.3837
  D. 2.3835
  B. 2.3843

• Question 97:

  Click on the Detail Button to view the Formula Sheet. Payment and settlement instructions should be passed:

  A. As quickly as possible.
  B. Within 24 hours of the transaction.
  C. Before 10:00am on the value date.
  D. Before close of business on the transaction date.
  A. As quickly as possible.

• Question 98:

  Click on the Detail Button to view the Formula Sheet. You have done the following deals in spot USD/JPY: Sold USD 5.0 million at 111.60 Bought USD 3.5 million at 111.20 Bought USD 2.0 million at 111.50 Sold USD 2.0 million at 111.55 What position do you now have?

  A. Short USD 1.50 million at 112.60
  B. Short USD 3.50 million at 111.75
  C. Long USD 1.50 million at 111.10
  D. Long USD 3.50 million at 111.55
  A. Short USD 1.50 million at 112.60

• Question 99:

  Click on the Detail Button to view the Formula Sheet.

  You are quoted the following market rates:

  spot USD/JPY 123.65

  1M (30-day) USD. 2.15%

  1M (30-day) JPY0. 10%

  What is 1-month USD/JPY?

  A. 123.44
  B. 123.65
  C. 123.86
  D. 123.90
  A. 123.44

• Question 100:

  Click on the Detail Button to view the Formula Sheet. If a 6-month AUD/NZD swap is quoted 173/165, which of the following statements would you consider to be correct?

  A. 6-month AUD rates are higher than 6-month NZD rates
  B. 6-month AUD rates are lower than 6-month NZD rates
  C. Spot AUD/NZD will be higher by approximately 170 points in 6 months
  D. The AUD yield curve is positive, whilst the NZD curve is negative
  A. 6-month AUD rates are higher than 6-month NZD rates