ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 231:

  Click on the Detail Button to view the Formula Sheet. You are short of 6 Dec eurodollar futures contracts at 98.10. Yesterday, the closing price was 98.15. Todays closing price is 97.905. What variation margin will be due?

  A. You will have to pay USD 612.50
  B. You will receive USD 612.50
  C. You will have to pay USD 3,675.00
  D. You will receive USD 3,675.00
  D. You will receive USD 3,675.00

• Question 232:

  Click on the Detail Button to view the Formula Sheet. What type of institution is the typical issuer of bank bills?

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

• Question 233:

  Click on the Detail Button to view the Formula Sheet. The use of mobile phones from within the dealing room for transacting business:

  A. Is not considered good practice.
  B. Is accepted in case of direct deal input into the bank's system.
  C. Is accepted for senior dealers.
  D. Is accepted for hedging transactions.
  A. Is not considered good practice.

• Question 234:

  Click on the Detail Button to view the Formula Sheet. What usually happens to the collateral in a tri-party repo?

  A. It is put at the disposal of the buyer
  B. It is held by the seller in the name of the buyer
  C. It is held by the tri-party agent in the name of the buyer
  D. It is frozen in the sellers account with the tri-party agent
  C. It is held by the tri-party agent in the name of the buyer

• Question 235:

  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 236:

  Click on the Detail Button to view the Formula Sheet. Written confirmation is a function that can be done by:

  A. Any dealer as long as he/she is not a party to the trade.
  B. Staff in the back-office.
  C. Staff in the dealing room who are not dealing.
  D. Any staff outside the dealing room.
  B. Staff in the back-office.

• Question 237:

  Click on the Detail Button to view the Formula Sheet. You have received a gift from a good friend who also happens to be your USD/YEN broker. Under such circumstances, the Model Code recommends that you should:

  A. Always decline gifts.
  B. Give the gift to charity.
  C. Keep the gift.
  D. Report the gift to management.
  D. Report the gift to management.

• Question 238:

  Click on the Detail Button to view the Formula Sheet. When using legal documentation, proposed modifications:

  A. Should be documented as soon as possible after a deal is done.
  B. Should be clearly stated before a deal.
  C. Can be agreed verbally.
  D. Are not permissible.
  B. Should be clearly stated before a deal.

• Question 239:

  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 240:

  Click on the Detail Button to view the Formula Sheet. If GBP/USD is 1.5350-53 and USD/JPY is 106.50-53, what is GBP/JPY ?

  A. 163.48-56
  B. 163.51-52
  C. 69.36-39
  D. 69.38-39
  A. 163.48-56