ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 51:

  Click on the Detail Button to view the Formula Sheet. The organisational structure of market participants should ensure a strict segregation between front and back office of:

  A. Duties and reporting lines.
  B. Systems.
  C. Career paths.
  D. All of the above.
  A. Duties and reporting lines.

• Question 52:

  Click on the Detail Button to view the Formula Sheet. Borrowing USD for 12 months and lending them for 6 months (means that you are making):

  A. Forward-forward loan
  B. Forward-forward deposit
  C. Negative gap
  D. An over-lent position
  B. Forward-forward deposit

• Question 53:

  Click on the Detail Button to view the Formula Sheet. A bank that has quoted a firm price is obliged to deal:

  A. At that price.
  B. At that price in a marketable amount.
  C. At that price in a marketable amount with an acceptable name.
  D. At that price in a marketable amount with an acceptable name and provided the market price has not moved excessively.
  C. At that price in a marketable amount with an acceptable name.

• Question 54:

  Click on the Detail Button to view the Formula Sheet. Today is Monday, 8th December. You sell a 9x12 FRA for value Thursday, 10th September next year. On what date is the settlement amount due to be paid or received (assuming that there are no holidays)?

  A. 8th September next year
  B. 10th September next year
  C. 8th December next year
  D. 10th December next year
  B. 10th September next year

• Question 55:

  Click on the Detail Button to view the Formula Sheet. What is the day count/annual basis convention for euroyen deposits?

  A. Actual/365
  B. Actual/360
  C. Actual/actual
  D. 30E/360
  B. Actual/360

• Question 56:

  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 57:

  Click on the Detail Button to view the Formula Sheet.

  From the following GBP deposit rates:

  1M (31-day) GBP deposits3.15%

  2M (61-day) GBP deposits3.25%

  3M (91-day) GBP deposits3.41%

  4M (120-day) GBP deposits3.56%

  5M (152-day) GBP deposits3.73%

  6M (182-day) GBP deposits3.90%

  calculate the 3x4 forward-forward rate.

  A. 3.410%
  B. 3.977%
  C. 3.996%
  D. 3.997%
  D. 3.997%

• Question 58:

  Click on the Detail Button to view the Formula Sheet. You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10 million interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 4.95%. You expect 6-month LIBOR in 6 months to fix at 5.25%, in 12 months at 5.35% and in 18 months at 5.40%. What do you expect the net settlement amounts to be over the next 2 years? Assume 30-day months.

  A. pay 250, receive 1,250, receive 1,750, receive 2,000
  B. receive 250, pay 1,250, pay 1,750, pay 2,000
  C. pay 2,500, receive 12,500, receive 17,500, receive 20,000
  D. receive 2,500, pay 12,500, pay 17,500, pay 20,000
  C. pay 2,500, receive 12,500, receive 17,500, receive 20,000

• Question 59:

  Click on the Detail Button to view the Formula Sheet. A forward-forward loan creates an exposure to the risk of:

  A. Higher interest rates
  B. Lower interest rates
  C. Steepening yield curve
  D. Parallel shift downwards in the yield curve
  A. Higher interest rates

• Question 60:

  Click on the Detail Button to view the Formula Sheet. Which of the following is always a secured instrument?

  A. ECP
  B. Repo
  C. Interbank deposit
  D. CD
  B. Repo