ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 241:

  Click on the Detail Button to view the Formula Sheet. When is a broker allowed to assume a deal is closed:

  A. When one of the principals confirms the deal.
  B. When the principals give a written undertaking for all deals done at the end of the day.
  C. When an acknowledgement is received from the principal that the deal is done.
  D. When both back offices acknowledge the deal.
  C. When an acknowledgement is received from the principal that the deal is done.

• Question 242:

  Click on the Detail Button to view the Formula Sheet. A disgruntled customer claims that he should not have to settle an FRA with you because it is really just a wager. What type of risk are you exposed to?

  A. Credit risk
  B. Legal risk
  C. Settlement risk
  D. Basis risk
  B. Legal risk

• Question 243:

  Click on the Detail Button to view the Formula Sheet. Which of the following currencies is quoted on an actual/360 basis?

  A. EUR
  B. JPY
  C. CHF
  D. All of the above
  D. All of the above

• Question 244:

  Click on the Detail Button to view the Formula Sheet. Where internet trading facilities are established by a bank for a client, the conditions and controls should be stated in a rulebook produced by:

  A. The bank.
  B. The local bankers association.
  C. The local regulator.
  D. Negotiation between the bank and client.
  A. The bank.

• Question 245:

  Click on the Detail Button to view the Formula Sheet. 3-month EUR/USD FX swaps are quoted to you at 15/19. If the "points are in your favour", what have you done?

  A. Bought and sold 3-month EUR/USD through the swap
  B. Sold and bought 3-month EUR/USD through the swap
  C. Made the quote
  D. Cannot say
  A. Bought and sold 3-month EUR/USD through the swap

• Question 246:

  Click on the Detail Button to view the Formula Sheet. The Model Code recommends that when banks accept a stop-loss order:

  A. Management must ensure ongoing lines of communication are in place between the parties.
  B. Management must report to the central bank.
  C. Management allows only experienced dealers to take such orders.
  D. Bank staff must secure the approval of the counterpartys management to accept such orders.
  A. Management must ensure ongoing lines of communication are in place between the parties.

• Question 247:

  Click on the Detail Button to view the Formula Sheet. What is a Vostro account?

  A. Your account at another bank
  B. A foreign bank's account in your bank in your domestic currency
  C. An account in your bank used for internal transactions
  D. A customer's account at your bank
  B. A foreign bank's account in your bank in your domestic currency

• Question 248:

  Click on the Detail Button to view the Formula Sheet. What is the purpose of an initial margin on a futures exchange?

  A. To cover losses incurred between variation margin payments
  B. To exclude retail investors
  C. To pay reserve requirements
  D. To cover fees due to the clearing house
  A. To cover losses incurred between variation margin payments

• Question 249:

  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 250:

  Click on the Detail Button to view the Formula Sheet. A dealer does the following deals in EUR/USD: buys EUR 1 m at 1.1020 sells EUR 3 m at 1.1022 buys EUR 2 m at 1.1002 buys EUR 1.5 m at 1.1012 What position does the dealer now have?

  A. Long EUR 1.5 m at 1.0984
  B. Short EUR 1.5 m at 1.1036
  C. Long EUR 1.5 m at 1.1012
  D. Short EUR 3.0 m at 1.1025
  A. Long EUR 1.5 m at 1.0984