ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 121:

  The seller of a EUR/RUB NDF could be:

  A. a potential buyer of EUR against RUB
  B. speculating on an appreciation of the Russian Rouble
  C. expecting rising EUR/RUB exchange rates
  D. a seller of Russian Rouble
  B. speculating on an appreciation of the Russian Rouble

• Question 122:

  Which of the following statements about Eurodollar deposits is correct?

  A. Eurodollar deposits can only be dealt by banks in the USA
  B. US withholding tax applies to Eurodollar deposits
  C. Eurodollar deposits are free of US reserve requirements
  D. Eurodollar deposits are subject to US exchange controls
  C. Eurodollar deposits are free of US reserve requirements

• Question 123:

  A customer sells a LIFFE Euro Swiss futures contract. Which of the following risks could he be trying to hedge?

  A. An increase in forward USD/CHF
  B. Falling CHF interest rates
  C. A decrease in forward USD/CHF
  D. Rising CHF interest rates
  D. Rising CHF interest rates

• Question 124:

  An option premium is normally a positive function of:

  A. the traded volume
  B. the historical volatility of the price of the underlying commodity
  C. the style (European or American) of the option
  D. the implied volatility of the price of the underlying
  D. the implied volatility of the price of the underlying

• Question 125:

  Which of the following statements reflects the position of the Model Code on gambling or betting amongst market participants?

  A. Gambling and betting amongst market participants should be strongly discouraged.
  B. Gambling and betting amongst market participants may be permitted if management monitors it.
  C. Gambling and betting amongst market participants should be prohibited.
  D. Gambling and betting amongst market participants is only tolerated if it is previously reported to the CFP of the ACI.
  A. Gambling and betting amongst market participants should be strongly discouraged.

• Question 126:

  In trade confirmation, which one of the following statements about "matching" is correct?

  A. matching should be performed by no later than the day after trading day
  B. matching processes are manual and may not be automated
  C. matching should be performed as soon as possible upon receipt of the confirmation
  D. confirmation matching should be a post-settlement workflow activity
  C. matching should be performed as soon as possible upon receipt of the confirmation

• Question 127:

  Extended trading hours and off-premises dealing can involve additional hazards, the avoidance of which requires clear controls. The Model Code prescribes best market practice. Which of thefollowing is true?

  A. Off-premises dealing should be strictly prohibited.
  B. After-hours trading should be prohibited.
  C. Deals transacted after normal business hours or off-premises should only be undertaken on mobile phones approved by management.
  D. Deals transacted after normal business hours or off-premises either by mobile phones or any other equipment should only be undertaken with the approval of management.
  D. Deals transacted after normal business hours or off-premises either by mobile phones or any other equipment should only be undertaken with the approval of management.

• Question 128:

  7-day USCP is quoted at a rate of discount of 1.75%. What is its true yield?

  A. 1.73%
  B. 1.75%
  C. 1.77%
  D. 1.80%
  B. 1.75%

• Question 129:

  An interest rate swap is:

  A. A contract to exchange one stream of income payments for another
  B. A temporary exchange of one deposit for another of a longer maturity in the same currency
  C. A forward-forward contract
  D. All of the above
  A. A contract to exchange one stream of income payments for another

• Question 130:

  Basis risk on a futures contract is:

  A. The risk of an adverse change in the futures price
  B. The risk of an adverse change in the spread between futures and cash prices
  C. The progressive illiquidity of a futures contract as it approaches expiry
  D. The risk of a divergence between the futures price and the final fixing of the underlying interest rate
  B. The risk of an adverse change in the spread between futures and cash prices