ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 111:

  Click on the Detail Button to view the Formula Sheet. Confirmations must be sent out:

  A. Immediately after the deal is done.
  B. As quickly as possible after the deal is done.
  C. By electronic media only, e.g. fax, telex.
  D. Not later than the value date of the first leg of the transaction.
  B. As quickly as possible after the deal is done.

• Question 112:

  Click on the Detail Button to view the Formula Sheet. What is the Overnight Index for GBP?

  A. SONIA
  B. STINA
  C. LIBOR
  D. EONIA
  A. SONIA

• Question 113:

  Click on the Detail Button to view the Formula Sheet. For which of the following reasons is the extension of forward contracts at non-current rates is discouraged:

  These could be used to conceal profit or losses.

  ii.These could be used to perpetrate fraud.

  iii.These could result in an unauthorised extension of credit.

  iv.These could result in confusing settlement instructions.

  A. (i), (ii), (iii), and (iv).
  B. (i), (ii) and (iii).
  C. (i) and (iii).
  D. none of the above.
  B. (i), (ii) and (iii).

• Question 114:

  Click on the Detail Button to view the Formula Sheet. A CD with a face value of USD 250 million was issued at par with a coupon of 5% for 91 days. You buy it in the secondary market when it has 30 days remaining to maturity and is trading at 5.25%. How much do you pay?

  A. USD 252,056,972.97
  B. USD 252,028,916.32
  C. USD 250,000,000.00
  D. USD 248,911,014.31
  A. USD 252,056,972.97

• Question 115:

  Click on the Detail Button to view the Formula Sheet. 3-month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?

  A. unchanged
  B. 118/116
  C. 109/107
  D. 106/104
  B. 118/116

• Question 116:

  Click on the Detail Button to view the Formula Sheet. You and a dealer at another bank have an informal bilateral reciprocal arrangement to quote each other two-way prices. During periods of high volatility, the other dealer refuses to quote to

  you.

  The Model Code states that:

  A. The other dealer should act with honour, honesty and integrity.
  B. It is a purely matter for your two institutions.
  C. Such arrangements are not in any way enforceable or binding.
  D. All of the above.
  B. It is a purely matter for your two institutions.

• Question 117:

  Click on the Detail Button to view the Formula Sheet. The use of standard settlement instructions (SSI's) is strongly encouraged because:

  A. It reduces operational risk.
  B. It splits differences arising from failed settlement between the two counterparties.
  C. It removes the need for sending out SWIFT payment authorisations.
  D. All of the above.
  A. It reduces operational risk.

• Question 118:

  Click on the Detail Button to view the Formula Sheet. What is Model Codes recommendation on the settlement of differences by "points"?

  A. It is not favoured.
  B. It may be permitted when allowed by the local market regulator.
  C. It is unconditionally accepted by the Code.
  D. It is allowed only if senior management approval is obtained.
  A. It is not favoured.

• Question 119:

  Click on the Detail Button to view the Formula Sheet. How many USD would you have to invest at 3.5% to be repaid USD125 million (principal plus interest) in 30 days?

  A. USD 124,641,442.43
  B. USD 124,636,476.94
  C. USD 124,635,416.67
  D. USD 123,915,737.30
  B. USD 124,636,476.94

• Question 120:

  Click on the Detail Button to view the Formula Sheet. Deals transacted direct or via a broker prior to 5:00am Sydney time on Monday morning:

  A. Are invalid.
  B. Must be approved by senior management before confirmation.
  C. Cannot be entered into without the approval of the local regulator.
  D. Are not considered to have been done in normal conditions or normal market hours.
  D. Are not considered to have been done in normal conditions or normal market hours.