ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 31:

  Click on the Detail Button to view the Formula Sheet. A broker offers a dealer an incentive in the form of a reduction to the agreed schedule of brokerage between the firms.

  A. This is a normal volume discount.
  B. The offer requires approval in writing by both senior managements.
  C. The offer requires agreement in writing between the broker and the dealer.
  D. This is illegal.
  B. The offer requires approval in writing by both senior managements.

• Question 32:

  Click on the Detail Button to view the Formula Sheet. Todays date is Thursday 12th December. What is the spot value date? Assume no bank holidays.

  A. 14th December
  B. 15th December
  C. 16th December
  D. 17th December
  C. 16th December

• Question 33:

  Click on the Detail Button to view the Formula Sheet.

  What is EONIA?

  A. Volume-weighted average overnight EUR deposit rate
  B. Volume-weighted average overnight EUR LIBOR
  C. Arithmetic average overnight EUR deposit rate
  D. ECB overnight lending rate
  A. Volume-weighted average overnight EUR deposit rate

• Question 34:

  Click on the Detail Button to view the Formula Sheet. EURIBOR is the:

  A. Daily fixing of EUR interbank deposit rates in the European market
  B. Daily fixing of EUR interbank deposit rates in the London market
  C. Another name for EUR LIBOR
  D. The ECBs official repo rate
  A. Daily fixing of EUR interbank deposit rates in the European market

• Question 35:

  Click on the Detail Button to view the Formula Sheet. What is the Gold Offered Forward Rate?

  A. The price differential between spot and forward gold prices
  B. The rate at which dealers will lend gold against US dollars
  C. The implied forward price of gold
  D. The price of gold for forward delivery
  B. The rate at which dealers will lend gold against US dollars

• Question 36:

  Click on the Detail Button to view the Formula Sheet. What is replacement cost a function of?

  A. Credit risk
  B. Market risk
  C. Both of the above
  D. None of the above
  A. Credit risk

• Question 37:

  Click on the Detail Button to view the Formula Sheet. What is the incentive for market-making?

  A. Bid/offer spread
  B. Flow information
  C. Relationships
  D. All of the above
  D. All of the above

• Question 38:

  Click on the Detail Button to view the Formula Sheet. A customer sells a LIFFE Euro Swiss futures contract. Which of the following risks could he be trying to hedge?

  A. An increase in forward USD/CHF
  B. Falling CHF interest rates
  C. A decrease in forward USD/CHF
  D. Rising CHF interest rates
  D. Rising CHF interest rates

• Question 39:

  Click on the Detail Button to view the Formula Sheet. Where the Committee for Professionalism of the ACI has been notified of a breach of the letter or spirit of the Model Code, it

  A. Will examine the complaint.
  B. May consult with the local ACI.
  C. Will bring the matter to the attention of the local regulator.
  D. None of the above.
  A. Will examine the complaint.

• Question 40:

  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