ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 41:

  For which of the following transactions are proper and completed bilateral master agreements considered essential PRIOR to any dealing?

  A. spot FX
  B. repo
  C. forward FX
  D. FRAs
  B. repo

• Question 42:

  Why is securities reconciliation necessary?

  A. to prevent that a failed order results in a failure to settle that day, which in turn would lead to an incompletely-reconciled account
  B. to facilitate the handling of complex security transactions
  C. in order to save data capacity in electronic archiving systems
  D. to anticipate the fact that clearing houses stop processing in the afternoon, whereas payment orders may still be processed until 6 PM
  A. to prevent that a failed order results in a failure to settle that day, which in turn would lead to an incompletely-reconciled account

• Question 43:

  The function of a prospectus can best be described as:

  A. establishing a guarantee for the prompt repayment of the issue at maturity
  B. establishing a guarantee of the issues investment value
  C. providing full disclosure about the issue
  D. formalizing the contract between the issuer and the lead / co-lead manager
  C. providing full disclosure about the issue

• Question 44:

  The coupon of this type of bond can be based on a country`s CPI (Consumer Price Index):

  A. "step up" bonds
  B. index linked bonds
  C. premium bonds
  D. par bonds
  B. index linked bonds

• Question 45:

  Your money market dealer has lent GBP 5,000,000.00 at 4 3/4% for 6 months (183 days). How much must the counterparty pay back to you in capital plus accrued interest at maturity?

  A. GBP 5,117,123. 29
  B. GBP 5,119,075. 00
  C. GBP 5,119,075. 34
  D. GBP 5,120,729.17
  C. GBP 5,119,075. 34

• Question 46:

  Internationally, USD FRAs are settled with reference to which market rate?

  A. LIBOR
  B. LIMEAN
  C. LIBID
  D. EURIBOR
  A. LIBOR

• Question 47:

  What criteria should reconciliation escalation be based on?

  A. it should be based on the days past settlement date, value and/or likely compensation
  B. it should be based on the BIC-address and country
  C. it should be based on bilateral limits
  D. it should be based on the relationships of the institutions involved
  A. it should be based on the days past settlement date, value and/or likely compensation

• Question 48:

  Which of the following is considered a non-negotiable instrument?

  A. Certificate of Deposit (CD)
  B. FRA
  C. US Treasury Note
  D. ECP
  B. FRA

• Question 49:

  On Friday, your trader lends GBP 10,000,000.00 overnight at 7 1/2%. The instructions are for repayment of principal + interest. How much would you expect to be repaid?

  A. GBP 10,006,250.00
  B. GBP 10,002,054. 79
  C. GBP 10,006,164. 38
  D. GBP 10,002,083. 33
  C. GBP 10,006,164. 38

• Question 50:

  S.I.stands for:

  A. Secure Software Integration
  B. Standard Settlement Instructions
  C. Single Shared Information
  D. SWIFT Settlement Instruction
  B. Standard Settlement Instructions