ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 51:

  A European-style option is:

  A. an option traded in EUR
  B. an option which can be exercised at any time between the purchase and expiration date
  C. an option with premium payable only on its expiry date
  D. an option which can be exercised only at maturity
  D. an option which can be exercised only at maturity

• Question 52:

  What are the major objectives of the Model Code?

  A. to promote the Basel II agreements
  B. to promote international cooperation to combat money laundering
  C. to promote domestic financial regulations
  D. to promote a high level of ethical and professional conduct in order to create an efficient market
  D. to promote a high level of ethical and professional conduct in order to create an efficient market

• Question 53:

  You have two nostro accounts in USD, one account is long USD 5 million and the other is short USD 5 million. What action should be taken to reconcile the accounts?

  A. No action is required. The credit interest earned on the credit balance will offset the debit interest incurred on the short balance
  B. You should borrow USD 5 million to cover the short balance and leave the long balance as it is
  C. You should lend the surplus USD 5 million in order to overdraft charges on the short balance with the interest earned on the loan
  D. You should instruct the bank with the long balance to pay USD 5 million to the other bank
  D. You should instruct the bank with the long balance to pay USD 5 million to the other bank

• Question 54:

  Which settlement system offers the lowest risks?

  A. EBA
  B. CLS
  C. TARGET
  D. EAF
  B. CLS

• Question 55:

  As far as interest rate swaps are concerned, which risk is reduced or eliminated when a close-out netting agreement is in place?

  A. replacement risk
  B. volatility risk
  C. commercial risk
  D. market risk is reduced to a predefined amount
  A. replacement risk

• Question 56:

  When would you use a SWIFT message type 300?

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

• Question 57:

  A dealer makes the following deals in EUR/USD: Sells EUR 1,500,000.00 at 1.1160 Buys EUR 3,250,000.00 at 1.1142 Sells USD 2,229,600,00 at 1.1148 Buys USD 1,450,410.00 at 1.1157 What is the dealers position as a result of these trades?

  A. Short EUR 2,450,000.00 m at 1.1123
  B. Long EUR 2,450,000.00 at 1.1128
  C. Long EUR 2,000,000.00 at 1.1132
  D. Long EUR 2,450,000.00 at 1.1125
  B. Long EUR 2,450,000.00 at 1.1128

• Question 58:

  Under what circumstances should you ask for "use of funds"?

  B. if your nostro A shows a debit whereas your nostro B shows a credit balance, you allow correspondent B to use your credit balance to work with, in order to receive credit interests to partially or totally cover the overdraft interests on nostro
  C. if at the end of a month, you want to collect the credit balances and to ask for credit interest
  D. if the net balance on a nostro account is higher than the amount agreed upon with your counterparty
  B. if your nostro A shows a debit whereas your nostro B shows a credit balance, you allow correspondent B to use your credit balance to work with, in order to receive credit interests to partially or totally cover the overdraft interests on nostro

• Question 59:

  The capital market is the general term for a financial market in which:

  A. short-term debt, equities and securities, as well as short-term financial instruments are traded; maturities are generally less than one year
  B. medium to long-term debt and financial instruments, as well as medium and long-term securities are traded until they reach maturity
  C. only long-term corporate bonds, with maturities of five years or more, are bought and sold
  D. only short-term financial instruments and short-term securities are traded
  B. medium to long-term debt and financial instruments, as well as medium and long-term securities are traded until they reach maturity

• Question 60:

  If a dealer buys 1 million EUR/USD at 1.1122, 2 million EUR/USD at 1.1132, 3 million EUR/USD at 1.1175 and sells 1 million EUR/USD at 1.1185, what position is he left with?

  A. Long 5 million EUR/USD at 1.1156
  B. Long 5 million EUR/USD at 1.1145
  C. Short 5 million EUR/USD at 1.1156
  D. Short 5 million EUR/USD at 1.1145
  B. Long 5 million EUR/USD at 1.1145