ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 251:

  Click on the Detail Button to view the Formula Sheet. If EUR/USD is quoted to you as 1.1050-53, does this price represent?

  A. The number of EUR per USD
  B. The number of USD per EUR
  C. Depends on whether the price is being quoted in Europe or the US
  D. Depends on whether the price is being quoted interbank or to a customer
  B. The number of USD per EUR

• Question 252:

  Click on the Detail Button to view the Formula Sheet. You bought a USD 4,000,000 6x9 FRA at 6.75%. The settlement rate is 3-month (90-day) BBA LIBOR, which is fixed at 5.50%. What is the settlement amount at maturity?

  A. You receive USD 12,330.46
  B. You pay USD 12,330.46
  C. You pay USD 12,163.81
  D. You receive USD 12,163.81
  B. You pay USD 12,330.46

• Question 253:

  Click on the Detail Button to view the Formula Sheet. What is a master agreement intended to do?

  A. Describe the parameters of a dealing relationship
  B. Set out the rights and obligations of two parties
  C. Apply to all transactions between two parties
  D. All of the above
  D. All of the above

• Question 254:

  Click on the Detail Button to view the Formula Sheet. Basis risk on a futures contract is:

  A. The risk of an adverse change in the futures price
  B. The risk of an adverse change in the spread between futures and cash prices
  C. The progressive illiquidity of a futures contract as it approaches expiry
  D. The risk of a divergence between the futures price and the final fixing of the underlying interest rate
  B. The risk of an adverse change in the spread between futures and cash prices

• Question 255:

  Click on the Detail Button to view the Formula Sheet.

  Using the following rates:

  spot GBP/CHF 2.3785-15

  spot CHF/SEK 5.5975-85

  3M GBP/SEK swap 725/690

  What is the price for 3-month outright GBP/SEK?

  A. 13.3860-13.4020
  B. 13.2435-13.2615
  C. 13.2412-13.2638
  D. 13.2445-13.2605
  C. 13.2412-13.2638

• Question 256:

  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 257:

  Click on the Detail Button to view the Formula Sheet. A 7% CD was issued recently, at par, which you now purchase at 6.75%. You would expect to pay:

  A. The face value of the CD
  B. More than the face value
  C. Less than the face value
  D. Too little information to decide
  B. More than the face value

• Question 258:

  Click on the Detail Button to view the Formula Sheet. If the value date of forward USD/JPY transactions is declared a holiday in either New York or Tokyo, the correct value date will be:

  A. The value date of the centre which is open.
  B. The next business day of the centre which is closed.
  C. The next business day when both New York and Tokyo are open.
  D. None of the above.
  C. The next business day when both New York and Tokyo are open.

• Question 259:

  Click on the Detail Button to view the Formula Sheet. Bank participants have a duty to make it clear that their prices are firm or merely indicative:

  A. Only if they are dealing with brokers.
  B. Only if they are dealing in a fast moving market.
  C. Only if the amount is not marketable.
  D. At all times.
  D. At all times.

• Question 260:

  Click on the Detail Button to view the Formula Sheet. If the value date of forward USD/JPY transactions is declared a holiday in either New York or Tokyo, the correct value date will be:

  A. The value date of the centre which is open.
  B. The next business day of the centre which is closed.
  C. The next business day when both New York and Tokyo are open.
  D. None of the above.
  C. The next business day when both New York and Tokyo are open.