ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 271:

  Click on the Detail Button to view the Formula Sheet. When a broker makes an error on payment instructions The Model Code recommends that:

  A. The broker remains liable for the resulting difference for 3 full business days following the date of the transaction.
  B. The broker remains liable until the error is discovered.
  C. The broker is not liable at all.
  D. The broker's liability should be limited as he is not in a position to directly rectify the situation.
  D. The broker's liability should be limited as he is not in a position to directly rectify the situation.

• Question 272:

  Click on the Detail Button to view the Formula Sheet. The Model Code strongly recommends that intra-day oral deal checks should:

  A. Be conducted out at the end of the morning and afternoon trading sessions.
  B. Be only be conducted after the close of business.
  C. Be mutually agreed between the bank and the broker or counterparty.
  D. Be the responsibility of the broker.
  C. Be mutually agreed between the bank and the broker or counterparty.

• Question 273:

  Click on the Detail Button to view the Formula Sheet. You quote a price to a broker on EUR 100 million. Your price is hit for EUR 50 million. What does the Model Code say about this situation?

  A. You have a right to qualify your quotes in terms of amounts, if you do so when you make the price.
  B. You have a right to qualify your quotes in terms of amounts, provided the amounts are marketable.
  C. You have a right to qualify your quotes in terms of amounts, once you have discovered the name of the counterparty for credit reasons.
  D. You have a right to qualify your quotes in terms of amounts.
  A. You have a right to qualify your quotes in terms of amounts, if you do so when you make the price.

• Question 274:

  Click on the Detail Button to view the Formula Sheet.

  The market is quoting:

  1-month (31-day) USD. 1.75%

  3-month (91-day) USD. 2.05%

  What is the 1x3 rate in USD?

  A. 4.261%
  B. 2.202%
  C. 1.900%
  D. 1.592%
  B. 2.202%

• Question 275:

  Click on the Detail Button to view the Formula Sheet. A 12-month EUR/USD swap is quoted at 241/244. EUR interest rates are expected to fall, with USD interest rates (which are higher) remaining stable. Assuming no change in the spot rate what effect would you expect on the forward points?

  A. Unchanged
  B. Move towards 228/231
  C. Move towards 257/260
  D. Insufficient information
  C. Move towards 257/260

• Question 276:

  Click on the Detail Button to view the Formula Sheet. In the unforeseen event that a particular maturity date is declared a public holiday, what is normal market practice for spot FX? : A. Extend the contract to the next business day

  B. Shorten the contract to the previous business day
  C. A new maturity date has to be agreed by the two parties involved
  D. ACI's Committee for Professionalism decides on a case by case basis
  A

• Question 277:

  Click on the Detail Button to view the Formula Sheet. A 3-month (91-day) deposit of EUR25 million is made at 3.25%. At maturity, it is rolled over three times at 3.55% for 90 days, 4.15% for 91 days and 4.19% for 89 days. At the end of 12 months, how much is repaid (principal plus interest)?

  A. EUR 25,962,011.01
  B. EUR 25,959,714.91
  C. EUR 25,948,878.47
  D. EUR 25,948,648.82
  A. EUR 25,962,011.01

• Question 278:

  Click on the Detail Button to view the Formula Sheet. The major difference between futures and OTC instruments like FRAs and interest rate swaps is that futures are:

  A. Exchange-traded
  B. Guaranteed
  C. Standardised
  D. All of the above
  D. All of the above

• Question 279:

  Click on the Detail Button to view the Formula Sheet. Cable is quoted at 1.6075-80 and you say "5 yours!" to the broker. What have you done?

  A. Sold USD 5 million at 1.6075
  B. Sold GBP 5 million at 1.6075
  C. Bought GBP 5 million at 1.6080
  D. Bought USD 5 million at 1.6080
  B. Sold GBP 5 million at 1.6075

• Question 280:

  Click on the Detail Button to view the Formula Sheet. An option contract that gives the buyer the right to exercise the option at the average of the prices of the underlying during its life is called:

  A. European-style option
  B. American-style option
  C. Bermudan option
  D. Asian option
  D. Asian option