ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 131:

  The spot/next repo rate for the 5% bund 2006 is quoted to you at 1.75-80%. You sell bonds with a market value of EUR 5,798,692 through a sell/buy-back. The Repurchase Price is:

  A. EUR 5,798,982
  B. EUR 5,799,497
  C. EUR 5,746,376
  D. EUR 5,000,694
  A. EUR 5,798,982

• Question 132:

  You are the buyer of protection in a credit default swap. All other things being equal your counterparty credit risk is increasing if:

  A. the credit spread is decreasing
  B. the credit spread is decreasing and recovery rate is increasing
  C. the credit spread is increasing
  D. the recovery rate is increasing
  C. the credit spread is increasing

• Question 133:

  With reference to dealing periods, what does the term "short dates" refer to?

  A. overnight, tom-next and spot-next
  B. maturities up to one week
  C. maturity dates of less than one month
  D. maturity dates of less than 10 days
  C. maturity dates of less than one month

• Question 134:

  A dealer has been asked by a broker to go to an exclusive club for the third time in a week. He should:

  A. Agree. Entertainment is a normal part of business.
  B. Refuse. This entertainment is excessive in value and frequency.
  C. Agree but insist on paying halt the cost.
  D. Refuse. Going back to the same club is clearly excessive entertainment.
  B. Refuse. This entertainment is excessive in value and frequency.

• Question 135:

  What is the name of a swap in which the counterparties sell currencies to each other with a concomitant agreement to reverse the exchange of currencies at a fixed date in the future at the same price, and where the interest rates for the two currencies are reflected in the two exchanges but paid separately?

  A. aFXswap
  B. an in/out swap
  C. a currency swap
  D. a quanto swap
  C. a currency swap

• Question 136:

  Cable is quoted at 1.6075-80 and you say "5 yours!" to the broker. What have you done?

  A. Sold USD 5 million at 1.6075
  B. Sold GBP 5 million at 1.6075
  C. Bought GBP 5 million at 1.60B0
  D. Bought USD 5 million at 1.6080
  B. Sold GBP 5 million at 1.6075

• Question 137:

  Where there are shared management responsibilities or where an investment or shareholding exists in a broker by a counterparty:

  A. the broker is not obligated to reveal any material connections provided Chinese Walls are in place.
  B. the broker is not required to reveal any connections at all.
  C. the broker is legally obliged to advise his clients of any material connections that exist.
  D. is a matter which is not covered by the Model Code.
  C. the broker is legally obliged to advise his clients of any material connections that exist.

• Question 138:

  What is a Vostro account?

  A. Your account at another bank
  B. A foreign bank's account in your bank in your domestic currency
  C. An account in your bank used for internal transactions
  D. A customer's account at your bank
  B. A foreign bank's account in your bank in your domestic currency

• Question 139:

  Clients of a voice-broker quote EUR/USD at 1.3556-61, 1.3559-62, 1.3557-63 and 1.3555-59. What will be the broker's price?

  A. 1.3559 choice
  B. 1.3555-63
  C. 1.3559-62
  D. 1.3556-59
  A. 1.3559 choice

• Question 140:

  You are quoted the following market rates:

  Spot AUD/CAD 1.0600 12M (360-day) AUD 3.40% 12M (360-day) CAD 1.55%

  What are the 12-month AUD/CAD forward points?

  A. +190
  B. -193
  C. -192
  D. -190
  D. -190