ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 331:

  What is the function of the cash positions keeper?

  A. He/she acts as a running control on the balance of a nostro, alerting the treasury dealer when funds are running too low or too high for a particular value day measured by agreed upon internal parameters
  B. He/she assists the dealer in deciding which currency to invest in
  C. He/she informs back office staff about which kind of confirmations are to be used
  D. He/she acts as a running control on the balance of an internal account, alerting the treasury dealer when fees are running too low or high for a particular value day
  A. He/she acts as a running control on the balance of a nostro, alerting the treasury dealer when funds are running too low or too high for a particular value day measured by agreed upon internal parameters

• Question 332:

  What are the components of a FX swap?

  A. two opposing spot trades
  B. a spot trade and a forward trade
  C. a cash trade with same-day settlement and a forward trade
  D. an outright and a barrier option
  B. a spot trade and a forward trade

• Question 333:

  Bank A has a large number of forward OTC trades with Bank B. What risks will be reduced by concluding a netting agreement?

  A. market-price-risk and replacement risk
  B. market-price-risk and delivery risk
  C. replacement risk and delivery risk
  D. replacement risk and basis risk
  C. replacement risk and delivery risk

• Question 334:

  The discount or premium on forward foreign exchange points is calculated based on:

  A. the level of interest rates in the base currency
  B. the level of interest rates in the counter currency
  C. the differential between the interest rates in the two currencies
  D. the current volatility in the FX markets
  C. the differential between the interest rates in the two currencies

• Question 335:

  Which of the following are primary markets?

  A. auction markets conducted by the U.S. Treasury for U.S. Treasury bills
  B. the repo market
  C. the foreign exchange market
  D. the over-the-counter market for U.S. Government Bonds
  A. auction markets conducted by the U.S. Treasury for U.S. Treasury bills

• Question 336:

  A redemption premium for a bond is

  A. always paid in case of an early redemption
  B. paid, if stipulated in the prospectus, at an early redemption
  C. always paid at final maturity
  D. only paid if a bond is redeemed after its initially scheduled maturity
  B. paid, if stipulated in the prospectus, at an early redemption

• Question 337:

  What are the consequences for credit risk when a collateral agreement is added to a netting agreement?

  A. A collateral agreement eliminates the future replacement risk
  B. A collateral agreement can reduce market risk
  C. A collateral agreement can reduce operational risk
  D. A collateral agreement can reduce the replacement risk
  D. A collateral agreement can reduce the replacement risk

• Question 338:

  The use of a bilateral netting scheme for FX settlements results in:

  A. one net settlement per currency, per counterparty, per day
  B. one net settlement per currency, per day
  C. one net settlement per day
  D. multiple settlements per currency, per counterparty, per day for those netted settlements
  A. one net settlement per currency, per counterparty, per day

• Question 339:

  An American-style option is:

  A. an option traded in USD
  B. an option which can be exercised at any time between the purchase and expiration date
  C. an option based on any US dollar instrument
  D. an option which can be exercised only at maturity
  B. an option which can be exercised at any time between the purchase and expiration date

• Question 340:

  A 3-month Eurodollar futures price of 90.25 implies a forward rate of:

  A. 9.25%
  B. 9.75%
  C. 8.75%
  D. 8.25%
  B. 9.75%