ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 311:

  Click on the Detail Button to view the Formula Sheet. What is the risk of dealing through an agent with an unknown principal?

  A. You may not be able to ensure that your firm can avoid suspicion of trading on non-public information or other allegations of bad or illegal trading practice.
  B. You may not be able to net your exposure in an insolvency.
  C. You may not be able to net your exposure for capital adequacy purposes.
  D. All of the above.
  D. All of the above.

• Question 312:

  Click on the Detail Button to view the Formula Sheet. If a dealer has any intention of assigning an interest rate swap to a third party soon after transacting that swap:

  A. The dealer should not reveal his future dealing intentions to his counterparty.
  B. The dealer should make his intention to assign clear before transacting.
  C. The dealer should agree the method of assignment before transacting.
  D. The counterparty should specify whether or not assignment would be acceptable in negotiations.
  B. The dealer should make his intention to assign clear before transacting.

• Question 313:

  Click on the Detail Button to view the Formula Sheet. You and a dealer at another bank have an informal bilateral reciprocal arrangement to quote each other two-way prices. During periods of high volatility, the other dealer refuses to quote to

  you.

  The Model Code states that:

  A. The other dealer should act with honour, honesty and integrity.
  B. It is a purely matter for your two institutions.
  C. Such arrangements are not in any way enforceable or binding.
  D. All of the above.
  B. It is a purely matter for your two institutions.

• Question 314:

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

  A. An adjusted settlement amount is paid at the end of the FRA contract period that includes reinvestment interest for late payment
  B. An unadjusted settlement amount is paid at the end of the FRA contract period
  C. An adjusted settlement amount is paid at the start of the FRA contract period that is discounted for early payment
  D. An unadjusted settlement amount is paid at the start of the FRA contract period
  C. An adjusted settlement amount is paid at the start of the FRA contract period that is discounted for early payment

• Question 315:

  Click on the Detail Button to view the Formula Sheet. Deliberately inputting incorrect big figures into an electronic dealing platform is:

  A. Technically impossible on electronic platforms
  B. Not an uncommon practice and something which professional dealers should be able to guard against.
  C. Not good practice.
  D. A criminal offence.
  C. Not good practice.

• Question 316:

  Click on the Detail Button to view the Formula Sheet. Where answerphone equipment is used for reporting and recording of off-premises transactions, it should be:

  A. On an special number known only to the chief dealer.
  B. On a number located in the office of the internal auditor.
  C. Secured so that reported transactions cannot be erased without senior management approval.
  D. Secured by recordings that are stored for a suitable period.
  C. Secured so that reported transactions cannot be erased without senior management approval.

• Question 317:

  Click on the Detail Button to view the Formula Sheet. You bought USD 5,000,000 against EUR at 1.1037 and 3,000,000 at 1.1052. If the EUR/USD rate is now quoted 1.1015/17, and if you deal at that rate, what profit would you make?

  A. Nil
  B. A profit of EUR 16,847.58
  C. A loss
  D. A profit of EUR 18,166.05
  B. A profit of EUR 16,847.58

• Question 318:

  Click on the Detail Button to view the Formula Sheet. Which of the following would not constitute an event of market disruption under the Model Code?

  A. The imposition of capital controls.
  B. A major terrorist attack on a financial centre.
  C. The failure of SWIFT.
  D. Concerted central bank intervention.
  D. Concerted central bank intervention.

• Question 319:

  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 320:

  Click on the Detail Button to view the Formula Sheet. In all dealing conversations, the Model Code strongly recommends:

  A. Dealers stick to market terminology in order to avoid the impression that they are offering an advisory or fiduciary role.
  B. Dealers clarify what is being proposed rather than using any terminology that could be misinterpreted.
  C. Dealers restrict themselves to terminology listed and explained in Chapter 11 of the Model Code.
  D. Dealers define complex terminology in the confirmation of a deal.
  B. Dealers clarify what is being proposed rather than using any terminology that could be misinterpreted.