ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 281:

  Click on the Detail Button to view the Formula Sheet. The Model Code recommends that, in the case of complaints about transactions, management should:

  A. Ensure complaints are investigated by the senior management of a firm not involved in the disputed transaction.
  B. Ensure complaints are fairly and independently investigated, in the first instance, by the ACIs Committee for Professionalism.
  C. Ensure complaints are investigated by representatives of a broking firm not directly involved in the disputed transaction and selected by both parties to the dispute.
  D. Ensure complaints are fairly and independently investigated, whenever practicable, by staff not directly involved in the disputed transaction.
  D. Ensure complaints are fairly and independently investigated, whenever practicable, by staff not directly involved in the disputed transaction.

• Question 282:

  Click on the Detail Button to view the Formula Sheet. You buy a 181-day 2.75% CD with a face value of USD 1,500,000 at par when it is issued. You sell it in the secondary market after 150 days at 2.60%. What is your holding period yield?

  A. 2.60%
  B. 2.75%
  C. 2.775%
  D. 2.813%
  C. 2.775%

• Question 283:

  Click on the Detail Button to view the Formula Sheet. Extended trading hours and off-premises dealing can involve additional hazards, the avoidance of which requires clear controls. The Model Code prescribes best market practice. Which of the following is true?

  A. Off-premises dealing should be forbidden.
  B. After-hours trading should be forbidden.
  C. Deals transacted after normal business hours or off-premises should only be undertaken on mobile phones approved by management.
  D. Deals transacted after normal business hours or off-premises either by mobile phones or any other equipment should only be undertaken with the approval of management.
  D. Deals transacted after normal business hours or off-premises either by mobile phones or any other equipment should only be undertaken with the approval of management.

• Question 284:

  Click on the Detail Button to view the Formula Sheet. Which of the following will tend to have the lowest yield?

  A. Interbank deposit
  B. Certificate of deposit
  C. Treasury bill
  D. BA
  C. Treasury bill

• Question 285:

  Click on the Detail Button to view the Formula Sheet. What is the buyers primary risk in a repo?

  A. The credit risk on the collateral
  B. The credit risk on the repo counterparty
  C. The legal risk on the contract
  D. The operational risk on margin maintenance
  B. The credit risk on the repo counterparty

• Question 286:

  Click on the Detail Button to view the Formula Sheet. Bank XYZ calls you for a quote in EUR/USD for EURO 20 million. If you decide to quote to Bank XYZ:

  A. You must be prepared to deal up to EUR 20 million.
  B. You may quote without stating the amount you are prepared to deal.
  C. You are only committed to deal in a marketable amount.
  D. None of the above.
  A. You must be prepared to deal up to EUR 20 million.

• Question 287:

  Click on the Detail Button to view the Formula Sheet. Which of the following is true?

  A. The CME eurodollar futures contract has a tick value (for one full basis point equivalent) of USD25 and a face value of USD 1,000,000
  B. The Euronext. LIFFE EURIBOR futures contract has a tick value (for one full basis point equivalent) of EUR25 and a face value of EUR 1,000,000
  C. The Euronext. LIFFE CHF futures contract has a tick value (for one full basis point equivalent) of CHF25 and a face value of CHF 1,000,000
  D. All of the above
  D. All of the above

• Question 288:

  Click on the Detail Button to view the Formula Sheet. Confirmations should be sent out by both counterparties through an efficient and secure means of communication, preferably electronic:

  A. Within 24 hours of the deal.
  B. Within two business days of the deal.
  C. Before the value date.
  D. As soon as possible.
  D. As soon as possible.

• Question 289:

  Click on the Detail Button to view the Formula Sheet. How can material divergences between the value of cash and collateral be managed in a documented sell/buy-back?

  A. Margin maintenance
  B. Re-pricing
  C. Either of the above, but usually (a)
  D. Either of the above, but usually (b)
  D. Either of the above, but usually (b)

• Question 290:

  Click on the Detail Button to view the Formula Sheet. You bought a EUR 8,000,000 6x9 FRA at 4.50%. The settlement rate is 3-month (90-day) EURIBOR, which is fixed at 3.50%. What is the settlement amount at maturity?

  A. You pay EUR 20,000.00
  B. You receive EUR 20,000.00
  C. You pay EUR 19,826.52
  D. You receive EUR 19,826.52
  C. You pay EUR 19,826.52