ACI 3I0-010 Online Practice Questions and Exam Preparation

ACI 3I0-010 Online Questions & Answers

• Question 71:

  Which of the following steps describes the correct sequence for running an investigation?

  A. 1. gather all the required documentation; 2. reach an agreement with your dealer; 3. send a claim to the counterparty
  B. 1. inform the compliance officer; 2. gather all required documentation; 3. contact the counterpartys dealer; 4. reach an agreement with the counterpartys dealer
  C. 1. contact the banks' attorney; 2. ask your dealer to amend or to cancel the deal; 3. ask the accounting department to the adjust value date
  D. 1. gather all required documentation; 2. determine the origin of any discrepancy 3. get in contact with the counterparty and submit the facts 4. reach an agreement with the counterparty
  D. 1. gather all required documentation; 2. determine the origin of any discrepancy 3. get in contact with the counterparty and submit the facts 4. reach an agreement with the counterparty

• Question 72:

  A dealer, seeking to refinance a money market short position in USD, could choose to:

  A. sell EUR/USD or GBP/USD spot
  B. deal Reverse Repos (Reverse Sale and Repurchase Agreements)
  C. place USD in tom next
  D. deal Repos (Sale and Repurchase Agreements)
  D. deal Repos (Sale and Repurchase Agreements)

• Question 73:

  Which of these statements is correct?

  A. The strike price of a Bermudan option is an average.
  B. A Bermudan option can be exercised only on a few specific dates prior to expiration.
  C. A Bermudan option can be exercised at any time before its maturity date.
  D. A Bermudan option can be exercised only at maturity.
  B. A Bermudan option can be exercised only on a few specific dates prior to expiration.

• Question 74:

  Which combination of risks: market risk, settlement risk, basis risk, counterparty risk, is associated with a forward FX deal?

  A. market risk and settlement risk
  B. market risk, settlement risk and basis risk
  C. market risk, settlement risk and counterparty risk
  D. settlement risk and counterparty risk
  C. market risk, settlement risk and counterparty risk

• Question 75:

  The prompt sending and checking of confirmations is considered a best practice when dealing in:

  A. amounts higher than USD 10,000,000.00 or the equivalent in other currencies
  B. amounts higher than USD 1,000,000.00 or the equivalent in other currencies
  C. any amount unless dealt via a broker
  D. any amount by any counterparty
  D. any amount by any counterparty

• Question 76:

  What is volatility?

  A. the difference between the current price of an asset and its previous close
  B. a statistical measure of price fluctuations as an annualized percentage
  C. the measure of the liquidity of a contract or security
  D. the difference between the annual high and low of a security
  B. a statistical measure of price fluctuations as an annualized percentage

• Question 77:

  What documents and/or information should you hold in order to start an investigation?

  A. From the counterparty: the trade confirmation. In-house: the trade confirmation, nostro reconciliation details, the dealing ticket and eventually dealing-system conversation printout
  B. From the counterparty: the dealers name and phone number. In-house: dealers name as well as the exact time the deal was processed
  C. From the counterparty: the trade confirmation. In-house: the open item list, nostro reconciliation details and the dealing ticket
  D. From counterparty: the balance report and the trade confirmation; In-house: the dealing-system conversation printout
  A. From the counterparty: the trade confirmation. In-house: the trade confirmation, nostro reconciliation details, the dealing ticket and eventually dealing-system conversation printout

• Question 78:

  In the weekend newspapers you read that one of your FX counterparties has gone into liquidation. You have no netting or close-out agreements in place with this counterparty and remember that you have one forward deal outstanding. What is the main risk affecting your bank?

  A. the loss of the entire principal amount of the deal
  B. the "replacement risk", also known as "replacement-cost risk"
  C. the loss of the negative mark-to-market value of the deal
  D. as the deal is in the future, there is no impact on PandL
  B. the "replacement risk", also known as "replacement-cost risk"

• Question 79:

  Which ONE of the following excerpts completes this statement of a best market practice? "Any exception to the confirmation process should be resolved..."

  A. no later than the value date
  B. within 2 days
  C. within 1 week
  D. on the day it is discovered
  D. on the day it is discovered

• Question 80:

  The effective Euro overnight reference rate, computed as a weighted average of all overnight unsecured lending transactions undertaken in the interbank market and computed with the help of the European Central Bank, is called:

  A. EURIBOR
  B. SONIA
  C. EONIA
  D. EURONIA
  C. EONIA