ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 231:

  Why are confirmations necessary?

  A. Confirmations authenticate the transaction to the risk manager, as well as providing essential information regarding bilateral limits.
  B. in order to authenticate the BIC-code of the counterparty when the confirmation is sent via SWIFT
  C. in order to have the exact mailing address of the counterparty when the confirmation is sent via mail
  D. Confirmations authenticate transactions to staff independent of the dealing room, as well as providing essential information regarding settlement.
  D. Confirmations authenticate transactions to staff independent of the dealing room, as well as providing essential information regarding settlement.

• Question 232:

  What risks arise from not receiving the securities purchased or not receiving payment for securities sold?

  A. liquidity, market and counterparty risk
  B. only a funding risk
  C. only a liquidity and a funding risk
  D. settlement, funding and liquidity risk
  D. settlement, funding and liquidity risk

• Question 233:

  Which of the following is true about interest rate swaps?

  A. The fixed rate and the floating rate payers know the cash value of their payments at the outset
  B. There is exchange of principal at the start and at the end of the swap
  C. Payment netting is only allowed through a third party
  D. The notional amount of the swap is generally not exchanged between counterparties
  D. The notional amount of the swap is generally not exchanged between counterparties

• Question 234:

  In using futures contracts there is:

  A. only market risk
  B. only credit risk
  C. market risk and credit risk
  D. market risk, credit risk and delivery risk
  A. only market risk

• Question 235:

  What is done with counter parties confirmations?

  A. They are scanned for money laundering activities and afterwards destroyed
  B. They are forwarded to the deal capturer to check the completeness of the deal
  C. They are matched as soon as possible after receipt
  D. They are archived after reception
  C. They are matched as soon as possible after receipt

• Question 236:

  The use of standard settlement instructions (SSI's) is strongly encouraged because:

  A. a dealer does not need to confirm payment details by phone
  B. it splits differences arising from failed settlements between the two counterparties
  C. it eliminates the need to send out SWIFT payment authorizations on a case-by-case basis
  D. it avoids having to confirm each deal separately
  A. a dealer does not need to confirm payment details by phone

• Question 237:

  The use of a net open positions report:

  A. can be used to show the counterparty the amounts it has to pay
  B. can be used as the basis of reporting the banks position to the relevant central bank of the country concerned, against the limit granted for the bank
  C. can be used as the basis of reporting the banks position to the relevant tax regulations office of the country concerned
  D. can be used to adjust the country limits
  B. can be used as the basis of reporting the banks position to the relevant central bank of the country concerned, against the limit granted for the bank

• Question 238:

  Major amendments to a prospectus can be made:

  A. at the discretion of the issuer and after the launch
  B. only with the consent of the note holders
  C. always in the case of default payment
  D. only by the custodian with the consent of the issuer
  B. only with the consent of the note holders

• Question 239:

  Rising interest rates will cause:

  A. a higher volume on settlement
  B. government borrowing to fall
  C. bond prices to rise in response to higher interest rates
  D. bond prices to fall
  D. bond prices to fall

• Question 240:

  What is a feature of multilateral netting?

  A. there are no more than two participants involved in the netting process
  B. there is no redistribution of default risk
  C. there is a central clearing house
  D. no legal entity is required
  C. there is a central clearing house