ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 101:

  Click on the Detail Button to view the Formula Sheet. A 6-month (182-day) investment of CHF15.5 million yields a return of CHF100,000. What is the rate of return?

  A. 1.32%
  B. 1.29%
  C. 1.28%
  D. 0.65%
  C. 1.28%

• Question 102:

  Click on the Detail Button to view the Formula Sheet. The use of off-market rates is discouraged and should be permitted only:

  A. When the bank's income is secured on the trade.
  B. If the unsecured credit is taken into account.
  C. If the bank knows the customer very well.
  D. When there are written procedures and policies for such transactions.
  D. When there are written procedures and policies for such transactions.

• Question 103:

  Click on the Detail Button to view the Formula Sheet. Are the forward points materially affected by changes in the spot rate?

  A. never
  B. Only for very large movements and longer terms
  C. always
  D. spot is the principal influence
  B. Only for very large movements and longer terms

• Question 104:

  Click on the Detail Button to view the Formula Sheet. In the international market, a FRA in USD is usually settled with reference to:

  A. BBA LIBOR
  B. Fed funds
  C. ISDA LIBOR
  D. EURIBOR
  A. BBA LIBOR

• Question 105:

  Click on the Detail Button to view the Formula Sheet. Spot cable is quoted at 1.6048-53 in the brokers and you quote a customer 1.6050-55 in USD 3 million. If they sell USD to you, how much GBP will you be short of?

  A. 4,816,500.00
  B. 1,868,809.57
  C. 1,868,576.77
  D. 4,815,900.00
  C. 1,868,576.77

• Question 106:

  Click on the Detail Button to view the Formula Sheet. Which of the following rates represents the highest investment yield in the euromarket?

  A. Semi-annual bond yield of 3.75 %
  B. Annual bond yield of 3.75 %
  C. Semi-annual money market yield of 3.75 %
  D. Annual money market rate of 3.75 %
  C. Semi-annual money market yield of 3.75 %

• Question 107:

  Click on the Detail Button to view the Formula Sheet. When dealing with customers, financial market professionals are advised by the Model Code to clarify that all transactions are entered into solely at each partys risk by explicitly agreeing in writing that:

  A. The customer understands the structure of the transaction.
  B. The customer has made its own assessment and independent decision to enter into the transaction and is doing so at its own risk and for its own account.
  C. No fiduciary or advisory relationship exists between the parties, and all the information is has received is not to be construed as investment advice or a recommendation to transact.
  D. All of the above.
  D. All of the above.

• Question 108:

  Click on the Detail Button to view the Formula Sheet. Where repos or securities lending transactions are entered into, the Model Code recommends:

  A. Documentation should be in place beforehand.
  B. Management should approve all transactions.
  C. Copies of the underlying documentation should be lodged with regulators.
  D. All of the above.
  A. Documentation should be in place beforehand.

• Question 109:

  Click on the Detail Button to view the Formula Sheet. The major difference between futures and OTC instruments like FRAs and interest rate swaps is that futures are:

  A. Exchange-traded
  B. Guaranteed
  C. Standardised
  D. All of the above
  D. All of the above

• Question 110:

  Click on the Detail Button to view the Formula Sheet. You have quoted your customer the following eurodollar deposit rates:

  1M 5.375-25%

  2M 5.4375-3125%

  3M 5.5-375%

  The customer says, "I give you USD 20 million in the two's". What have you done?

  A. Borrowed USD 20million at 5.3125%
  B. Lent USD 20 million at 5.4375%
  C. Borrowed USD 20 million at 5.4375%
  D. Lent USD 20 million at 5.3125%
  A. Borrowed USD 20million at 5.3125%