ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 161:

  A forward rate agreement (FRA) is:

  A. a future rate agreement involving two different currencies
  B. an interest rate agreement where buyer and seller will exchange an interest rate differential at a given date in the future
  C. an interest rate to be applied to a loan or deposit that begins and matures in the future
  D. an agreement to exchange cash flows starting on a specific date in the future
  B. an interest rate agreement where buyer and seller will exchange an interest rate differential at a given date in the future

• Question 162:

  A UK Treasury Bill has 91 days to maturity. Its redemption value is GBP 10,000.00. What is the purchase price of this bill using a discount rate of 6% per annum?

  A. GBP 9,400.00
  B. GBP 9,852. 22
  C. GBP 9,850.41
  D. GBP 9,848.33
  C. GBP 9,850.41

• Question 163:

  In FX swaps, the rate of the spot leg

  A. may be freely chosen by the quoting party as long as both parties agree on it
  B. must always be fixed immediately at the current mid rate, to reflect the rate at the time the deal was made
  C. should be fixed immediately within the current spread, to reflect current rates at the time the transaction was made
  D. should always be fixed off the current spread in order not to be mistaken for a spot FX transaction
  C. should be fixed immediately within the current spread, to reflect current rates at the time the transaction was made

• Question 164:

  Which kind of report is a reconciliation system unable to produce?

  A. A "probable matched items report" (a report in which most fields match but there are some discrepancies)
  B. A "calculated fees report" (a report of the expected fees owed)
  C. A "matched items report" (a report of all fields that match)
  D. An "unmatched items report" (a report of items for which one is unable to find matches)
  B. A "calculated fees report" (a report of the expected fees owed)

• Question 165:

  Calculation basis for EUR money market transaction is:

  A. 30/360
  B. ACT/365
  C. ACT/ACT
  D. ACT/360
  D. ACT/360

• Question 166:

  Which of the following statements best describes an asset swap?

  A. a combination of a fixed rate bond and a fixed/floating interest rate swap
  B. an option on fixed/floating interest rate swap
  C. the sale of a bond against cash with a simultaneous agreement to buy the bond at an agreed upon rate and date
  D. the sale of a fixed rate bond against the simultaneous purchase of a floating rate note
  A. a combination of a fixed rate bond and a fixed/floating interest rate swap

• Question 167:

  Which of the following steps is typical for an interbank FX trade process flow?

  A. physical delivery
  B. collateral management
  C. negotiation of fees
  D. settlement
  D. settlement

• Question 168:

  Your FX swap dealer sold and bought 2 months USD/CHF 10,000,000.00; rates were set to 1.2000 against 1.1930. What payment is your bank expecting in two months from now?

  A. USD 10,000,000.00
  B. CHF 11,930,000.00
  C. CHF 8,382,229.67
  D. CHF 10,000,000.00
  B. CHF 11,930,000.00

• Question 169:

  Which of the following best describes the main objective of the nostro reconciliation function?

  A. to ensure efficient cash management
  B. to ensure that all receipts of foreign currency are made in a timely fashion
  C. to reduce the amounts paid in interest rate claims due to late payments
  D. to ensure that expected cash movements agree with the actual movements of currency
  B. to ensure that all receipts of foreign currency are made in a timely fashion

• Question 170:

  The writer of an options contract:

  A. bears a risk limited to the premium paid
  B. bears a substantial risk
  C. bears a risk limited to the premium received
  D. bears no risk
  B. bears a substantial risk