ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 81:

  Click on the Detail Button to view the Formula Sheet. When a broker calls "off" at the very instant a dealer "hits" the broker's price:

  A. The transaction should be concluded.
  B. The broker decides whether or not the deal is done.
  C. ACI's Committee for Professionalism will decide whether the transaction should be concluded.
  D. The transaction should not be concluded.
  D. The transaction should not be concluded.

• Question 82:

  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 83:

  Click on the Detail Button to view the Formula Sheet. What type of risk would describe the failure of a back office to make adequate margin calls on repo positions?

  A. Credit risk
  B. Market risk
  C. Operational risk
  D. Settlement risk
  C. Operational risk

• Question 84:

  Click on the Detail Button to view the Formula Sheet.

  Using the following rates:

  3M (90-day) eurodeposits3.50%

  6M (180-day) eurodeposits3.75%

  What is the rate for a deposit, which runs from 3 to 6 months?

  A. 3.625%
  B. 3.285%
  C. 3.965%
  D. 3.835%
  C. 3.965%

• Question 85:

  Click on the Detail Button to view the Formula Sheet. An Overnight Indexed Swap is:

  A. A fixed-floating money market swap in which the floating rate is an overnight index fixed periodically over the term of the swap
  B. A fixed-floating money market swap in which the floating rate is the mean of the overnight index over the term of the swap
  C. A fixed-floating money market swap in which the floating rate is an overnight index compounded daily
  D. All of the above
  C. A fixed-floating money market swap in which the floating rate is an overnight index compounded daily

• Question 86:

  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%.How would you hedge the swap using FRAs? How to hedge an IRS with a strip of FRAs?

  A. buy a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
  B. sell a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
  C. buy a strip of 6x12, 12x18 and 18x24 FRAs
  D. sell a strip of 6x12, 12x18 and 18x24 FRAs
  D. sell a strip of 6x12, 12x18 and 18x24 FRAs

• Question 87:

  Click on the Detail Button to view the Formula Sheet. How much is a big figure worth per million of base currency if EUR/GBP is 0.6990?

  A. GBP 10,000
  B. EUR 10,000
  C. GBP 6,990
  D. EUR 6,990
  A. GBP 10,000

• Question 88:

  Click on the Detail Button to view the Formula Sheet. When a stop-loss/profit order is taken, the rate specified in the order:

  A. Must be transacted regardless of where the market moved.
  B. Must be transacted if a broker confirms that the rate specified was reached
  C. Cannot be taken as a fixed-price guarantee.
  D. None of the above.
  C. Cannot be taken as a fixed-price guarantee.

• Question 89:

  Click on the Detail Button to view the Formula Sheet. A customer asks for a price in 3-month CHF/JPY. You quote 56/54. The customer deals at 54. What have you done?

  A. Bought CHF against JPY spot and sold JPY against CHF 3-month forward
  B. Sold CHF against JPY spot and bought CHF against JPY 3-month forward
  C. Bought CHF against JPY spot and sold CHF against JPY 3-month forward
  D. Bought JPY against CHF 3-month outright
  C. Bought CHF against JPY spot and sold CHF against JPY 3-month forward

• Question 90:

  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.