ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 181:

  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 130.60 Bought USD 3.5 million at 130.20 Bought USD 2.0 million at 130.50 Sold USD 2.0 million at 130.55 What is your net position and average rate?

  A. Short USD 1.5 million at 130.46
  B. Long USD 1.5 million at 130.46
  C. Short USD 1.5 million at 131.60
  D. Long USD 1.5 million at 131.60
  C. Short USD 1.5 million at 131.60

• Question 182:

  Click on the Detail Button to view the Formula Sheet. You wish to sell a customer GBP/USD for value tomorrow. How can you hedge yourself?

  A. Sell and buy GBP/USD T/N
  B. Buy and sell GBP/USD T/N
  C. Sell GBP/USD spot, and sell and buy GBP/USD T/N
  D. Buy GBP/USD spot, and buy and sell GBP/USD T/N
  D. Buy GBP/USD spot, and buy and sell GBP/USD T/N

• Question 183:

  Click on the Detail Button to view the Formula Sheet. A 1-month (30-day) USCP with a face value of USD 5 million is quoted at a rate of discount of 2.31%. How much is the paper worth?

  A. USD 4,884,500.00
  B. USD 4,990,375.00
  C. USD 4,990.506.85
  D. USD 4,990,393.49
  B. USD 4,990,375.00

• Question 184:

  Click on the Detail Button to view the Formula Sheet. The Model Code is unequivocal on " position parking". What does it say?

  A. The parking of deals or positions with any counterparty is discouraged.
  B. The parking of deals or positions with any counterparty should be forbidden.
  C. The parking of deals or positions should be subject to a clear policy laid down in writing by senior management.
  D. In jurisdictions where position parking is allowed, prior approval should be sought from the regulator.
  B. The parking of deals or positions with any counterparty should be forbidden.

• Question 185:

  Click on the Detail Button to view the Formula Sheet. Fraud is typically classified as:

  A. Credit risk
  B. Market risk
  C. Legal risk
  D. Operational risk
  D. Operational risk

• Question 186:

  Click on the Detail Button to view the Formula Sheet. A CD can usually only be issued by what type of institution?

  A. Credit institution
  B. Investment bank
  C. Discount house
  D. All of the above
  A. Credit institution

• Question 187:

  Click on the Detail Button to view the Formula Sheet. A customer sells a LIFFE Euro Swiss futures contract. Which of the following risks could he be trying to hedge?

  A. An increase in forward USD/CHF
  B. Falling CHF interest rates
  C. A decrease in forward USD/CHF
  D. Rising CHF interest rates
  D. Rising CHF interest rates

• Question 188:

  Click on the Detail Button to view the Formula Sheet. If I say that I have "bought and sold" EUR/USD in an FX swap, what have I done?

  A. Bought EUR and sold USD spot, and sold EUR and bought USD forward
  B. Bought EUR/USD spot and sold EUR/USD forward
  C. Taken a EUR loan in exchange for making a USD loan with the same counterparty
  D. All of the above
  D. All of the above

• Question 189:

  Click on the Detail Button to view the Formula Sheet. If 6-month EUR/AUD is quoted at 29/32, which of the following statements is correct?

  A. EUR rates are higher than AUD rates in the 6-month
  B. AUD rates are higher than EUR rates in the 6-month
  C. There is a positive EUR yield curve
  D. There is not enough information to decide
  B. AUD rates are higher than EUR rates in the 6-month

• Question 190:

  Click on the Detail Button to view the Formula Sheet. You have a USD loan that is priced at 3-month LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting:

  1x3 USD FRA. 1.95-98%

  1x4 USD FRA. 2.07-10%

  1x6 USD FRA. 2.25-28%

  To hedge the next LIBOR fixing, you should:

  A. Sell a 1x3 FRA at 1.95%
  B. Buy a 1x3 FRA at 1.98%
  C. Buy a 1x4 FRA at 2.10%
  D. Sell a 1x4 FRA at 2.10%
  C. Buy a 1x4 FRA at 2.10%