ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 121:

  Click on the Detail Button to view the Formula Sheet. An interest rate swap is:

  A. A contract to exchange one stream of income payments for another
  B. A temporary exchange of one deposit for another of a longer maturity in the same currency
  C. A forward-forward contract
  D. All of the above
  A. A contract to exchange one stream of income payments for another

• Question 122:

  Click on the Detail Button to view the Formula Sheet. At the end of the day you are short EUR 10 million against GBP at 0.6712. You are asked to revalue your position at a EUR/GBP rate of 0.6729. What is the resulting profit or loss?

  A. Loss of GBP 17,000
  B. Profit of GBP 17,000
  C. Loss of EUR 17,000
  D. Profit of EUR of 17,000
  A. Loss of GBP 17,000

• Question 123:

  Click on the Detail Button to view the Formula Sheet. A dealer has indicated his intention of assigning an interest rate swap to a third party soon after transacting that swap. When about to execute an assignment:

  A. The dealer is entitled to provide the name of the original counterparty to the assignee.
  B. The dealer is entitled to provide the name of the assignee to the original counterparty.
  C. The dealer should seek the permission of the assignee before releasing the name to the original counterparty.
  D. The dealer should seek the permission of the original counterparty before releasing the name to the assignee.
  C. The dealer should seek the permission of the assignee before releasing the name to the original counterparty.

• Question 124:

  Click on the Detail Button to view the Formula Sheet. A customer gives you GBP 25 million at 6.625% same day for 7 days. Through a broker, you place the funds with a bank for the same period at 6.6875%. Brokerage is charged at 2 basis points per annum. What is the net profit or loss on the deal?

  A. Profit of GBP 299.66
  B. Profit of GBP 203.77
  C. Loss of GBP 299.66
  D. Loss of GBP 203.77
  B. Profit of GBP 203.77

• Question 125:

  Click on the Detail Button to view the Formula Sheet. An option is:

  A. The right to buy or sell a commodity at a fixed price
  B. The right to buy a commodity at a fixed price
  C. The right but not the obligation to buy or sell a commodity at a fixed price
  D. The right but not the obligation to buy commodity at a fixed price
  C. The right but not the obligation to buy or sell a commodity at a fixed price

• Question 126:

  Click on the Detail Button to view the Formula Sheet. Deliberately inputting incorrect big figures into an electronic dealing platform is:

  A. Technically impossible on electronic platforms
  B. Not an uncommon practice and something which professional dealers should be able to guard against.
  C. Not good practice.
  D. A criminal offence.
  C. Not good practice.

• Question 127:

  Click on the Detail Button to view the Formula Sheet. You hear from several counterparties that a major market participant has taken major losses on long USD/JPY positions. You know the reports are untrue, as you have in fact bought large amounts of USD/JPY from that very firm, which means that the impact of the reports on the market would be helpful to your position.

  A. As you have heard the reports from other parties, you are entitled to pass them on to market news services.
  B. As you have heard the reports from other parties, you are entitled to pass them on to other market participants.
  C. You should not pass any information you know to be false.
  D. You should contradict the reports.
  C. You should not pass any information you know to be false.

• Question 128:

  Click on the Detail Button to view the Formula Sheet. The Model Code rules that deals at non-current rates:

  A. Are forbidden.
  B. Require prior regulatory approval.
  C. Require the prior express permission of the senior management of both counterparties.
  D. Should be marked to market daily.
  C. Require the prior express permission of the senior management of both counterparties.

• Question 129:

  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 130:

  Click on the Detail Button to view the Formula Sheet. The term "under reference" refers to:

  A. An unavailability of credit limit for the counterparty.
  B. The need to reconfirm a transaction.
  C. The unacceptability of the counterparty's name.
  D. The rate quoted is going to be revised.
  B. The need to reconfirm a transaction.