ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 211:

  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 212:

  Click on the Detail Button to view the Formula Sheet. One of your brokers asks you to buy and sell EUR/USD at the same price net of brokerage in order to allow him to clear a transaction.

  A. You must have prior senior management approval.
  B. You must have the authority to switch names.
  C. You must execute such transactions as promptly as possible within policy guidelines .
  D. All of the above.
  D. All of the above.

• Question 213:

  Click on the Detail Button to view the Formula Sheet. Brokers shall not reveal the identity of a counterparty unless:

  A. They are forced to do so.
  B. Explicitly authorised to do so by the counterparty.
  C. They know the counterparty very well.
  D. They are asked by their senior management to do so.
  B. Explicitly authorised to do so by the counterparty.

• Question 214:

  Click on the Detail Button to view the Formula Sheet.

  You are quoted the following market rates:

  spot EUR/USD. 1.2250

  3M (91-day) EUR 2.55%

  3M (91-day) USD. 2.00%

  What is 3-month EUR/USD?

  A. 1.2232
  B. 1.2233
  C. 1.2234
  D. 1.2267
  B. 1.2233

• Question 215:

  Click on the Detail Button to view the Formula Sheet. Which of the following is sometimes called two-name paper?

  A. ECP
  B. BA or bank bill
  C. Treasury bill
  D. CD
  B. BA or bank bill

• Question 216:

  Click on the Detail Button to view the Formula Sheet. Eurodollar futures are:

  A. Traded on the CME and have a face value of USD 500,000
  B. Traded on the CBOT and have a face value of USD 1,000,000
  C. Traded on the CBOT and have a face value of USD 500,000
  D. Traded on the CME and have a face value of USD 1,000,000
  D. Traded on the CME and have a face value of USD 1,000,000

• Question 217:

  Click on the Detail Button to view the Formula Sheet. The forward points are calculated from:

  A. The level of interest rates in the base currency
  B. The level of interest rates in the quoted currency
  C. The interest rates in the two currencies
  D. Your expectations of the future spot rate
  C. The interest rates in the two currencies

• Question 218:

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

  A. EURIBOR
  B. EONIA
  C. Eurepo
  D. TMP
  B. EONIA

• Question 219:

  Click on the Detail Button to view the Formula Sheet. How long does the Model Code recommend that tape recordings of dealers/brokers should be kept?

  A. At least 2 months
  B. One year
  C. Up to one month
  D. Until the maturity of the deal
  A. At least 2 months

• Question 220:

  Click on the Detail Button to view the Formula Sheet. How could your firm avoid the risks of dealing through an agent with an unknown principal?

  A. Insist on a guarantee by the intermediary.
  B. Have the intermediary identify the principal to the compliance, legal or credit functions, but only give codes to your dealers.
  C. It is not possible to avoid these risks unless you demand that the principal is identified before each transaction.
  D. In practice, the risks are minimal provided you deal through a reputable agent.
  B. Have the intermediary identify the principal to the compliance, legal or credit functions, but only give codes to your dealers.