ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 91:

  As regards controls, which of the following best practices for counterparty identification is incorrect?

  A. Amendments to customer standing data should be subject to 4 eyes control and only changed if the appropriately authorized documentation is provided.
  B. The set up of settlement instructions and the confirmation method should be fixed when setting the first transaction.
  C. No trading should be done without first identifying and setting up the counterparty.
  D. Counterparty identification and setup of settlement instructions should be completed in less than 2 working days.
  B. The set up of settlement instructions and the confirmation method should be fixed when setting the first transaction.

• Question 92:

  What is the primary function of GC repo, particularly very short -term transactions?

  A. Financing long positions
  B. Covering short positions
  C. Interest rate positioning
  D. Dividend tax arbitrage
  A. Financing long positions

• Question 93:

  A disgruntled customer claims that he should not have to settle an FRA with you because it is really just a wager. What type of risk are you exposed to?

  A. Credit risk
  B. Legal risk
  C. Settlement risk
  D. Basis risk
  B. Legal risk

• Question 94:

  How many USD would you have to invest at 3.5% to be repaid USD125 million (principal plus interest) in 30 days?

  

  

  A. USD 124,641,442.43
  B. USD 124,636,476.94
  C. USD 124,635,416.67
  D. USD 123,915,737.30
  B. USD 124,636,476.94

• Question 95:

  The Model Code strongly recommends that intra-day oral deal checks should:

  A. Be conducted out at the end of the morning and afternoon trading sessions.
  B. Be only be conducted after the close of business.
  C. Be mutually agreed between the bank and the broker or counterparty.
  D. Be the responsibility of the broker.
  C. Be mutually agreed between the bank and the broker or counterparty.

• Question 96:

  You quote spot EUR/USD at 1.3023-26 in 5 to another bank. He says, "Take 5, could do 8". How much are you obliged to do?

  A. Nothing, as he changed the terms of the deal
  B. EUR 5,000,000.00
  C. More than EUR 5,000,000.00, but a maximum of EUR 8,000,000.00
  D. EUR 8,000,000.00
  B. EUR 5,000,000.00

• Question 97:

  You bought a EUR 8,000,000 6x9 FRA at 4.50%. The settlement rate is 3-month (90-day) EURIBOR, which is fixed at 3.50%. What is the settlement amount at maturity?

  A. You pay EUR 20,000.00
  B. You receive EUR 20,000.00
  C. You pay EUR 19,826.52
  D. You receive EUR 19,826.52
  C. You pay EUR 19,826.52

• Question 98:

  In FX trading a "third party beneficiary" is best described as:

  A. the issuer of a payment for the relevant trade distinct from the counterparty
  B. the issuer of a payment for the relevant trade identical to the counterparty
  C. the recipient of a payment for the relevant trade distinct from the counterparty
  D. the recipient of a payment for the relevant trade identical to the counterparty
  C. the recipient of a payment for the relevant trade distinct from the counterparty

• Question 99:

  Principals are allowed to:

  A. visit a broker's dealing room to arrange or confirm deals
  B. visit a broker's dealing room with the permission of the management of both parties
  C. deal from within a broker's dealing room with the permission of the broker's management
  D. place an order with a broker from within the same broker's office
  B. visit a broker's dealing room with the permission of the management of both parties

• Question 100:

  How many Yen would you pay to buy 1 ounce of gold if you were quoted the following?

  XAU/USD 1575.25-75 USD/JPY 96.55-60

  A. JPY 152,090
  B. JPY 152,139
  C. JPY 152,169
  D. JPY 152,217
  D. JPY 152,217