ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 1:

  Your bank purchases a FRA at 5. 75% in USD. Under what conditions will you pay a cash settlement?

  A. if EURIBOR is higher than 5. 75%
  B. if EURIBOR is lower than 5. 75%
  C. if LIBOR is lower than 5. 75%
  D. if LIBOR is higher than 5. 75%
  C. if LIBOR is lower than 5. 75%

• Question 2:

  Which of the following statements is correct?

  A. The settlement of a FRA is paid at maturity date.
  B. The settlement amount is paid at the trade date of a FRA.
  C. The cash settlement amount on a FRA is usually a discounted amount.
  D. The settlement amount on a FRA is not based on the LIBOR for the relevant period.
  C. The cash settlement amount on a FRA is usually a discounted amount.

• Question 3:

  What is the deadline for settling interbank spot-deals in EUR via the TARGET system?

  A. 10:00 CET
  B. 18:00 CET
  C. 12:00 CET
  D. 15:00 CET
  B. 18:00 CET

• Question 4:

  A plain vanilla interest rate swap is:

  A. an agreement to exchange one stream of interest payments for another (fixed against floating)
  B. a fixed rate leg in one currency and a fixed rate leg in another currency
  C. two floating rate legs on different indexes
  D. an agreement to borrow and lend one currency for another at two different value dates
  A. an agreement to exchange one stream of interest payments for another (fixed against floating)

• Question 5:

  Your dealer has sold EUR 5,000,000.00 against USD at 1.0945. How much would you expect to receive in settlement?

  A. USD 5,472,500.00
  B. USD 3,618,523. 32
  C. USD 5,453,650.00
  D. USD 3,619,487. 12
  A. USD 5,472,500.00

• Question 6:

  If today's spot date were Monday, 1 March, what would be the maturity of a 1-month CHF interbank deposit, assuming that there are no intervening bank holidays?

  A. Tuesday, 30 March
  B. Wednesday, 31 March
  C. Thursday, 1 April
  D. Friday, 2 April
  C. Thursday, 1 April

• Question 7:

  Settlement risk is:

  A. the risk that a bank makes its payment but does not receive a return payment in the exchanged currency
  B. the risk that exchange rates move against a banks position
  C. the risk a counterparty defaults on a contract and a bank has to replace that contract at adverse rates
  D. the risk of a disaster that disables a bank's trading floor
  A. the risk that a bank makes its payment but does not receive a return payment in the exchanged currency

• Question 8:

  You bought a 6x9 EUR 8,000,000.00 FRA at 4. 50%. Settlement is now due and 3 months (90 days) EURIBOR is 3. 50%. What amount do you pay or receive?

  A. pay EUR 20,000.00
  B. receive EUR 20,000.00
  C. pay EUR 19,826. 52
  D. receive EUR 19,826. 52
  C. pay EUR 19,826. 52

• Question 9:

  In a deal confirmation, who is the counterparty on futures contracts?

  A. the futures exchange itself
  B. the clearing house of the futures exchange
  C. the broker
  D. the ISDA
  B. the clearing house of the futures exchange

• Question 10:

  What is the deadline for a same day customer payment in EUR using TARGET?

  A. 15:00 hours Central European Time (CET)
  B. 17:00 hours Central European Time (CET)
  C. 18:00 hours Central European Time (CET)
  D. 16:00 hours Central European Time (CET)
  B. 17:00 hours Central European Time (CET)