ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 221:

  Click on the Detail Button to view the Formula Sheet. Borrowing USD for 12 months and lending them for 6 months (means that you are making):

  A. Forward-forward loan
  B. Forward-forward deposit
  C. Negative gap
  D. An over-lent position
  B. Forward-forward deposit

• Question 222:

  Click on the Detail Button to view the Formula Sheet. The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75-80%. As collateral, you are offered EUR25 million nominal of the 5.5% OAT April 2006, which is worth EUR 28,137,500. If you impose an initial margin of 1%, the Repurchase Price is:

  A. EUR 27,947,276.43
  B. EUR 27,946,077.08
  C. EUR 27,950,071.43
  D. EUR 27,948,871.97
  D. EUR 27,948,871.97

• Question 223:

  Click on the Detail Button to view the Formula Sheet. What is settlement risk in FX?

  A. The risk of failure of a payments or settlement system
  B. The risk that only one side of an exchange of currencies will be made
  C. The risk of payments gridlock in a real-time gross settlement system
  D. The risk that default by a counterparty before the value date means you have to replace the defaulted deal at a worse rate
  B. The risk that only one side of an exchange of currencies will be made

• Question 224:

  Click on the Detail Button to view the Formula Sheet. Convert 8.25% quoted on a semi-annually compounded money market basis for USD to the equivalent annually-compounded bond basis.

  A. 8.30%
  B. 8.52%
  C. 8.54%
  D. 8.69%
  C. 8.54%

• Question 225:

  Click on the Detail Button to view the Formula Sheet. A broker can consider a deal as done if:

  A. He is confident that the dealer will not back out of the deal.
  B. Both parties have established credit lines for each other.
  C. One party acknowledges interest.
  D. He receives verbal acknowledgement from the dealer.
  D. He receives verbal acknowledgement from the dealer.

• Question 226:

  Click on the Detail Button to view the Formula Sheet. Where the matter of dealing for personal account is concerned, the Model Code recommends that:

  A. Subject to local legal requirements, this matter is one for bank management to decide.
  B. Bank management should encourage such activities because it allows banks to monitor the gambling habits of their staff.
  C. Where this is allowed, bank management should have a clearly defined policy and written procedures.
  D. Bank management should allow staff to deal for their personal account on a case to case basis.
  C. Where this is allowed, bank management should have a clearly defined policy and written procedures.

• Question 227:

  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 228:

  Click on the Detail Button to view the Formula Sheet. Which type of repo is the least risky for the buyer?

  A. Delivery repo
  B. HIC repo
  C. Tri-party repo
  D. There is no real difference
  A. Delivery repo

• Question 229:

  Click on the Detail Button to view the Formula Sheet. Todays date is Thursday 12th December. What is the spot value date? Assume no bank holidays.

  A. 14th December
  B. 15th December
  C. 16th December
  D. 17th December
  C. 16th December

• Question 230:

  Click on the Detail Button to view the Formula Sheet. If a broker refers to "the payer of 5-year euro at 4.12", what is this party doing?

  A. Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.
  B. Paying a fixed rate of 4.12% per annum on an actual/actual basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.
  C. Paying a 5-year euro deposit and receiving a rate of interest of 4.12% on an actual/360 basis.
  D. Taking a 5-year euro deposit and paying a rate of interest of 4.12% on an actual/360 basis.
  A. Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.