ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 291:

  Click on the Detail Button to view the Formula Sheet. A CD with a face value of USD50 million and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss since issue?

  A. +USD 373,599.00
  B. +USD 186,099.00
  C. -USD 1,400.99
  D. Nil
  C. -USD 1,400.99

• Question 292:

  Click on the Detail Button to view the Formula Sheet. When you are accepting a stop loss order, you must:

  A. Ensure that your counterparty understands the terms under which your bank accepts the order.
  B. Ensure that your counterparty can be contacted in the event of unusual situations or events or extremely volatile market conditions.
  C. Ensure that your counterparty understands that any guarantee of fixed price execution requires agreement in writing.
  D. All of the above.
  C. Ensure that your counterparty understands that any guarantee of fixed price execution requires agreement in writing.

• Question 293:

  Click on the Detail Button to view the Formula Sheet. How are Overnight Indexed Swaps settled?

  A. periodic exchange of fixed and floating payments up to and including maturity
  B. at maturity by net payment
  C. after maturity by exchange of fixed and floating payments
  D. after maturity by net payment
  D. after maturity by net payment

• Question 294:

  Click on the Detail Button to view the Formula Sheet. Which of the following are quoted in terms of a yield-to-maturity?

  A. USCP
  B. ECP
  C. Treasury bill
  D. BA
  B. ECP

• Question 295:

  Click on the Detail Button to view the Formula Sheet. If spot GBP/CHF is quoted 2.3875-80 and the 3-month forward outright is 2.3660-70, what are the forward points?

  A. 21.5/21
  B. 210/215
  C. 215/210
  D. 21/21.5
  C. 215/210

• Question 296:

  Click on the Detail Button to view the Formula Sheet.

  You are quoted the following market rates:

  spot GBP/USD. 1.6530

  9M (272-day) GBP. 3.60%

  9M (272-day) USD. 1.95%

  What are the 9-month GBP/USD forward points?

  A. +206
  B. +197
  C. -195
  D. -204
  C. -195

• Question 297:

  Click on the Detail Button to view the Formula Sheet. What does the Model Code say about the responsibility of a broker in handling suspicious transactions?

  A. Suspicious transactions should be reported by the principals.
  B. Brokers need to make staff aware of the problem and exercise vigilance.
  C. A broker should report any suspicions about a transaction to the other counterparty.
  D. Brokers should advise clients to reject the name.
  B. Brokers need to make staff aware of the problem and exercise vigilance.

• Question 298:

  Click on the Detail Button to view the Formula Sheet. A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is 3.25%. If you held GBP 10,500,000 of this bond, what would be the cost of borrowing against it in the repo market?

  A. GBP 7,551.37
  B. GBP 6,544.52
  C. GBP 5,537.67
  D. GBP 1,006.85
  C. GBP 5,537.67

• Question 299:

  Click on the Detail Button to view the Formula Sheet. In a dispute between the dealer and a broker, the Model Code recommends that this should be referred in the first instance to:

  A. Central bank.
  B. Senior management of the bank and the brokerage firm.
  C. Head of compliance.
  D. ACI's Committee for Professionalism (CFP).
  B. Senior management of the bank and the brokerage firm.

• Question 300:

  Click on the Detail Button to view the Formula Sheet. What are the secondary market proceeds of a CD with a face value of EUR 5 million and a coupon of 3% that was issued at par for 182 days and is now trading at 3% but with only 7 days remaining to maturity?

  A. EUR 4,997,085.03
  B. EUR 5,000,000.00
  C. EUR 5,071,086.45
  D. EUR 5,072,874.16
  D. EUR 5,072,874.16