ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 1:

  You are quoted spot USD/NOK 5.7220-28 and USD/SEK 6.3850-58, at what price can you buy NOK against SEK?

  A. 0.8963
  B. 1.1157
  C. 1.1159
  D. 1.1160
  D. 1.1160

• Question 2:

  What is the major difference between a CD and a deposit?

  A. The CD yields a higher rate of return
  B. The CD has less credit risk
  C. The CD is a transferable instrument
  D. The CD has a shorter range of maturities
  C. The CD is a transferable instrument

• Question 3:

  A 3-month (91-day) deposit of AUD 25,000,000.00 is made at 3.25%. At maturity, it is rolled over three times at 3.55% for 90 days, 4.15% for 91 days and 4.19% for 89 days. At the end of 12 months, how much is repaid (principal plus interest)?

  A. AUD 25,962,011.00
  B. AUD 25,959,714.91
  C. AUD 25,948,878.47
  D. AUD 25,948,648.82
  A. AUD 25,962,011.00

• Question 4:

  What does the Model Code say about netting?

  A. Market participants are strongly recommended to net bilateral transactions with counterparties where activity justifies it.
  B. Market participants should establish payments netting agreements with cross-border counterparties where activity justifies it.
  C. Market participants should establish legally viable bilateral netting agreements with counterparties where activity justifies it.
  D. Market participants should establish legally viable multilateral netting agreements where activity justifies it.
  C. Market participants should establish legally viable bilateral netting agreements with counterparties where activity justifies it.

• Question 5:

  The market is quoting:

  1-month (31-day) USD. 1.75% 3-month (91-day) USD. 2.05% What is the 1x3 rate in USD?

  A. 4.261%
  B. 2.202%
  C. 1.900%
  D. 1.592%
  B. 2.202%

• Question 6:

  Principals who enter into an interest rate swap with the intention of shortly afterwards assigning or transferring the swap to a third party:

  A. should never reveal their future dealing intentions to their counterparties
  B. should make clear their intention to do so when initially negotiating the deal
  C. should agree upon the method of assignment before transacting
  D. should only reveal any such intentions after the confirmations have been exchanged
  B. should make clear their intention to do so when initially negotiating the deal

• Question 7:

  Which is the day count/annual basis convention for SGD money market deposits?

  A. ACT/365
  B. ACT/360
  C. ACT/ACT
  D. 30E/360
  A. ACT/365

• Question 8:

  Using the following rates:

  3M (90-day) EUR deposit 0.25%

  6M (180-day) EUR deposit 0.50%

  What is the rate for a EUR deposit, which runs from 3 to 6 months?

  A. 0.25%
  B. 0.375%
  C. 0.75%
  D. 0.50%
  C. 0.75%

• Question 9:

  If a dealer has any intention of assigning an interest rate swap to a third party soon after transacting that swap:

  A. The dealer should not reveal his future dealing intentions to his counterparty.
  B. The dealer should make his intention to assign clear before transacting.
  C. The dealer should agree the method of assignment before transacting.
  D. The counterparty should specify whether or not assignment would be acceptable in negotiations.
  B. The dealer should make his intention to assign clear before transacting.

• Question 10:

  An `at-the-money' option has:

  A. Intrinsic value but no time value
  B. Time value but no intrinsic value
  C. Both time value and intrinsic value
  D. Neither time value nor intrinsic value
  B. Time value but no intrinsic value