ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 101:

  What should be done when a voice broker calls "off" at the very instant the dealer hits the broker's price as "mine" or "yours"?

  A. The transaction should be concluded and the broker should inform both counterparties accordingly.
  B. The dealer who hits the broker's price may decide whether the deal is done or not; the broker should inform both counterparties accordingly.
  C. The deal should not be concluded and the broker should inform both counterparties accordingly.
  D. The broker should immediately inform both counterparties that the deal will have to berenegotiated.
  C. The deal should not be concluded and the broker should inform both counterparties accordingly.

• Question 102:

  Voice-brokers in spot FX are remunerated with:

  A. Commission paid by both parties at rates agreed beforehand
  B. A fee paid by the seller
  C. Bid/offer spread
  D. A share of the bid/offer spread
  A. Commission paid by both parties at rates agreed beforehand

• Question 103:

  Under the Model Code, it a broker shouts "done" or "mine" at the very moment a dealer shouts "off":

  A. No deal is done.
  B. The deal is done.
  C. It should be resolved in consultation with senior management.
  D. The central bank should be consulted.
  B. The deal is done.

• Question 104:

  Today's spot value date is Friday 27th February. What is normally the 1-month maturity date? Assume no bank holidays.

  A. 28th March
  B. 29th March
  C. 30th March
  D. 31st March
  D. 31st March

• Question 105:

  If GBP/USD is quoted to you at 1.6120-30, how much GBP would you receive if you sold USD 2,000,000.00?

  A. 1,239,925.60
  B. 1,237,873.80
  C. 1,240,694.79
  D. 1,242,720.50
  A. 1,239,925.60

• Question 106:

  If the yield curve is upward sloping, a bank would not profit from:

  A. borrowing short and lending long
  B. borrowing long and lending short
  C. paying a higher rate on deposits than the market
  D. increasing the banks leverage
  B. borrowing long and lending short

• Question 107:

  Which one of the following statements concerning covenants is incorrect?

  A. Covenants are clauses in bank credit agreements and bond indentures designed to assure debt holders that the creditworthiness of the borrower(s)/issuer(s) will remain satisfactory
  B. Covenants must be tailored to reflect the specific needs of the borrower/issuer and the specific risks perceived by the debt holders.
  C. Covenants require the holder of the debt to refrain from doing certain specific things.
  D. Three different types of covenants in credit agreements and bond indentures are affirmative, negative and financial.
  C. Covenants require the holder of the debt to refrain from doing certain specific things.

• Question 108:

  Which of the following statements regarding economic capital is correct?

  A. Economic capital is calculated externally and is the amount of capital the firm should have to support its target credit rating
  B. Economic capital is calculated on an expected shortfall basis with a specific time horizon and confidence level.
  C. Economic capital is used for measuring and reporting risks across a financial organisation.
  D. Economic capital is always lower than regulatory capital because of the more adequate modelling of correlation effects compared to the regulatory approach.
  C. Economic capital is used for measuring and reporting risks across a financial organisation.

• Question 109:

  Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?

  A. minimum tier 1 capital of 4.5% and minimum total capital plus a conservation buffer of 10.5%
  B. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 8%
  C. minimum tier 1 capital of 4% and minimum total capital including conservation buffer of 10.5%
  D. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%
  D. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%

• Question 110:

  Which of the following situations would be most likely to result in a negative mark-to-market for a bank borrowing short term and lending long term?

  A. credit spread tightening of the long term position
  B. if the yield curve is inverted
  C. if the yield curve becomes steeper
  D. if there is a downward parallel shift in the yield curve
  C. if the yield curve becomes steeper