ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 251:

  An interest rate CAP can be defined as:

  A. a series of American call options on FRAs
  B. a series of European call options on FRAs
  C. a series of American put options on FRAs
  D. a series of European put options on FRAs
  B. a series of European call options on FRAs

• Question 252:

  If a GBP/CHF trade is made on the spot foreign exchange market on Tuesday, when will the two currencies be settled if tomorrow (Wednesday) is a bank holiday in the U.K.?

  A. both currencies will be settled value date Friday
  B. GBP will be settled value Friday, CHF value Thursday
  C. both currencies will be settled value Thursday
  D. GBP will be settled value today, CHF will be settled value Friday
  A. both currencies will be settled value date Friday

• Question 253:

  If the 90-day EUR rate is 3. 10% and the 180-day is 3. 50%, what is the 120-day rate using straight-line interpolation?

  A. 3. 20%
  B. 3. 21%
  C. 3. 23%
  D. 3. 30%
  C. 3. 23%

• Question 254:

  Which of the following statements apply to an FX swap?

  A. It consists of two separate transactions, dealt with two different counterparties.
  B. It replaces a pair of foreign exchange transactions.
  C. It fully eliminates counterparty risk.
  D. It reduces credit risk with the counterparty, as compared to money market deals.
  D. It reduces credit risk with the counterparty, as compared to money market deals.

• Question 255:

  Which of the following best describes the main benefit of the RTGS payment system?

  A. final settlement of interbank funds transfers on a continuous, trade by trade basis throughout the day
  B. lower costs through fewer payments passing through nostro accounts
  C. lower costs through less labour intensive methods
  D. reduced market risk due to smaller values of open positions
  A. final settlement of interbank funds transfers on a continuous, trade by trade basis throughout the day

• Question 256:

  What guidelines does the Model Code provide concerning the practice of only one party to a transaction sending a written confirmation?

  A. it is only permissible in derivatives markets
  B. it is not recommended
  C. it is recommended only when dealing interbank
  D. it is only permissible when dealing value today
  B. it is not recommended

• Question 257:

  What are the ISO codes for the Canadian Dollar, the Singapore Dollar, the South African Rand and the Swiss Franc (though not necessarily in that order)?

  A. SAR, CAD, SFR, SGD
  B. CAD, CHF, SGD, SAR
  C. SFR, SGD, ZAR, CAD
  D. SGD, ZAR, CAD, CHF
  D. SGD, ZAR, CAD, CHF

• Question 258:

  What is the most frequently used settlement process for securities?

  A. free of settlement payment
  B. cash settlement
  C. same day value settlement
  D. delivery-versus-payment
  D. delivery-versus-payment

• Question 259:

  What is the main difference between TARGET and TARGET2?

  A. Belgium does not participate in TARGET but it does participate in TARGET2
  B. The cut-off time for TARGET2 is 20:00 (8.00 p.m.) CET, whereas the cut-off time for TARGET is 18:00 (6. 00 p.m.) CET
  C. TARGET2 runs on a single shared platform whereas TARGET does not.
  D. TARGET2 processes payment orders denominated in EUR as well as USD
  C. TARGET2 runs on a single shared platform whereas TARGET does not.

• Question 260:

  What are the main advantages of settling an FX transaction through the CLS Bank?

  A. CLS eliminates foreign exchange risk and thus increases bank profits on FX deals
  B. CLS minimizes the settlement risk
  C. CLS reduces operational banking costs
  D. CLS eliminates the settlement risk but reduces operational efficiency
  B. CLS minimizes the settlement risk