ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 11:

  If your trader has dealt a 6-month USD/JPY swap, selling and buying USD 10 million, will you:

  A. expect a credit statement on your JPY nostro account on the near date
  B. be required to obtain and execute the ICMA Master Agreement to document the transaction
  C. need to instruct your USD nostro bank to pay out USD on the far date
  D. anticipate no movement of principal, but a cash settlement on the far date
  A. expect a credit statement on your JPY nostro account on the near date

• Question 12:

  When do you use a SWIFT message type 202?

  A. for a foreign exchange confirmation
  B. for multiple general financial institution transfers
  C. to confirm a general financial institution transfer
  D. for a customer transfer
  C. to confirm a general financial institution transfer

• Question 13:

  What is a settlement date?

  A. the date by which the interest payment on an operation must be made
  B. the last date by which the minimum reserve amount can be paid to the central bank
  C. the date, on which settlement must be made on the contracted amount or the differential amount of an operation
  D. the date a deal is processed
  C. the date, on which settlement must be made on the contracted amount or the differential amount of an operation

• Question 14:

  In the unexpected event that a public holiday is declared on the date a particular contract matures, what is the normal market practice?

  A. if that day is NOT the final trading day of the month, all contracts maturing on that day are extended to the next business day
  B. if that day is NOT the final trading day of the month, all contracts maturing on that day are shortened to the preceding business day
  C. all new maturity dates have to be agreed upon with the counterparties involved
  D. decisions about the maturity dates of trading contracts are made by ACI's Committee for Professionalism on a case-by- case basis and must be adhered to
  A. if that day is NOT the final trading day of the month, all contracts maturing on that day are extended to the next business day

• Question 15:

  What does a holiday file contain?

  A. It contains all weekends and bank holidays for all currencies held in the currency file
  B. It contains all holidays requests of the front-, middle- and back office staff
  C. It contains dates of school holidays
  D. It contains a list of deals where the maturity date is a weekend
  A. It contains all weekends and bank holidays for all currencies held in the currency file

• Question 16:

  A trader purchases a six month over-the-counter straddle (options strategy) for a 1 million premium from a counterparty. The maximum credit exposure over the life of the trade is:

  A. less than 1 million
  B. there is no credit exposure
  C. exactly 1 million
  D. none of the above
  D. none of the above

• Question 17:

  Today is the fixing date for 6x9 FRA that you sold at 5. 50% and for which the FRABBA LIBOR is now 6. 00%. Which of the following is true?

  A. You will pay a cash settlement to the counterparty
  B. You will receive the cash settlement
  C. There is no cash settlement pending
  D. There is insufficient information to make a determination
  A. You will pay a cash settlement to the counterparty

• Question 18:

  The "centralized collateral management service" offers which of the following services for its clients?:

  A. the valuation and transfer of collateral in general collateral (GC) repos only
  B. the valuation and transfer of collateral in triparty repos only
  C. the valuation and transfer of collateral in special repos only
  D. the valuation and transfer of collateral in any type of repo
  D. the valuation and transfer of collateral in any type of repo

• Question 19:

  You have been given collateral. In which case would you be least concerned about insisting on a "haircut"?

  A. non-cash emerging markets collateral
  B. cash collateral in JPY, your base currency is GBP
  C. cash collateral in USD, your base currency is USD
  D. non-cash high yield collateral
  C. cash collateral in USD, your base currency is USD

• Question 20:

  The difference between the bid and the offer rate of a money market quotation is called:

  A. the margin
  B. the spread
  C. the variation
  D. the premium
  B. the spread