ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 151:

  The two main risks to which treasuries are exposed can be grouped into: A. market and loss

  B. market and money

  C. market and credit

  D. market and unavailability

  Correct Answer. C
  C

• Question 152:

  Experience has shown that recourse to taped telephone conversations proves invaluable to the speedy resolution of disputes. Therefore, the Model Code recommends:

  A. that all telephone conversations be taped without informing any of the counterparties
  B. that all telephone conversations be taped subject to the consent of the counterparties
  C. that all telephone conversations between dealers and brokers be recorded
  D. that only telephone conversations between FX dealers be recorded
  C. that all telephone conversations between dealers and brokers be recorded

• Question 153:

  Due to an error by your dealers, your bank is 5 days late in paying EUR 10,000,000.00. Your correspondent bank says it will charge you 12% p. a. plus reserve costs of Euro 1.00 per thousand. How much will your account be charged for this overdraft?

  A. EUR 16,666. 67
  B. EUR 16,438.36
  C. EUR 1,200,000.00
  D. EUR 26,666. 67
  D. EUR 26,666. 67

• Question 154:

  What is the meaning of settlement (Herstatt) risk?

  A. the risk a payment order will not be processed due to a power failure in which the disaster recovery back-up system fails
  B. any amount that is due to be received under a contract should be regarded as a settlement risk until final confirmation of receipt is confirmed
  C. the risk that settlement arrangements will be made with the wrong counterparty
  D. the risk of aborting settlement procedures due to the unavailability of back office staff
  B. any amount that is due to be received under a contract should be regarded as a settlement risk until final confirmation of receipt is confirmed

• Question 155:

  How many characters does a BIC have? (Under ISO standard 9362, 2nd edition)

  A. 6 or 9 characters
  B. 9 or 12 characters
  C. 7 or 10 characters
  D. 8 or 11 characters
  D. 8 or 11 characters

• Question 156:

  When is the "final settlement" cut-off for interbank payments using TARGET?

  A. 19:00 (7. 00 p.m.) Central European Time (CET)
  B. 18:00 (6. 00 p.m.) Central European Time (CET)
  C. 18:30 (6. 30 p.m.) Central European Time (CET)
  D. 18:30 (6. 30 p.m.) CET, but on the last minimum reserve fulfilment day (23rd of a month) 19:30 (7. 30
  E. m.) CET
  B. 18:00 (6. 00 p.m.) Central European Time (CET)

• Question 157:

  What information is essential for an interbank FX confirmation?

  A. specification of the applicable law
  B. the value date
  C. the brokerage cost
  D. the name of the person(s) originating the deal
  B. the value date

• Question 158:

  If the EUR/USD is quoted to you as 1.1050-53, what does this price represent?

  A. EUR per USD
  B. USD per EUR
  C. the interest rate differential between EUR and USD
  D. the fact that one USD is worth more than one EUR
  B. USD per EUR

• Question 159:

  When should discrepancies between front-office and back-office systems be resolved?

  A. by the end of the trading day
  B. on the next business day
  C. on the value date
  D. as soon as they become apparent
  D. as soon as they become apparent

• Question 160:

  Commercial Paper for USD 5 million was issued at 5%, which you now buy to yield 3 3/4%. What would you expect to pay?

  A. the face value of 5 million
  B. more than 5 million
  C. less than 5 million
  D. cannot decide based on the information supplied
  C. less than 5 million