ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 151:

  What is a `duration gap'?

  A. the average maturity of liabilities on a balance sheet
  B. the difference between the duration of assets and liabilities
  C. the difference between the duration of the longest-held and shortest-held liabilities on the balance sheet
  D. the average maturity of the portfolio on the asset side of a balance sheet
  B. the difference between the duration of assets and liabilities

• Question 152:

  To establish and maintain a short position in deliverable securities, you must:

  A. Sell
  B. Sell and subsequently buy back
  C. Sell and borrow
  D. Sell, borrow and buy back simultaneously
  C. Sell and borrow

• Question 153:

  When a broker calls "off" at the very instant a dealer "hits" the broker's price: A. The transaction should be concluded.

  B. The broker decides whether or not the deal is done.
  C. ACI's Committee for Professionalism will decide whether the transaction should be concluded.
  D. The transaction should not be concluded.
  D. The transaction should not be concluded.

• Question 154:

  Which of the following is a Model Code good practice regarding the passing of names?

  A. Bank dealers should, wherever possible, give brokers prior indication of counterparties with whom they would be unwilling to do business.
  B. Brokers may divulge the names of principals prematurely to induce a counterparty to transact.
  C. Dealers should never give brokers guidance on the extent of their price differentiation across broad categories of counterparties.
  D. When a principal's name proves unacceptable to another principal, the broker is bound to divulge who refused it.
  A. Bank dealers should, wherever possible, give brokers prior indication of counterparties with whom they would be unwilling to do business.

• Question 155:

  The weighted average duration of liabilities can be increased by:

  A. buying additional 30-year German Government bonds
  B. selling futures contracts on 30-year German Government bonds
  C. buying futures contracts on 10-year German Government bonds
  D. exercising an early repayment option on a long-term senior borrowing
  D. exercising an early repayment option on a long-term senior borrowing

• Question 156:

  The Model Code's correct recommendation regarding electronic trading states:

  A. Time stamps on e-trading platforms need to be internally and globally synchronised to ensure appropriate tracking of trades
  B. All records should be archived and appropriate audit trails must be maintained as required by the local Central Bank
  C. Regular tests for loss of access to external liquidity platforms but not loss of service to clients should be undertaken
  D. Testing of the system's capability to cope with extreme volumes should be carried out annually
  A. Time stamps on e-trading platforms need to be internally and globally synchronised to ensure appropriate tracking of trades

• Question 157:

  Where voicemail equipment is used for the reporting and recording of off-premises transactions, voice mail should be:

  A. installed on secret number known only to the chief dealer
  B. installed and located in the office of the head of compliance
  C. installed and located in such a way that reported transactions cannot be subsequently erased without senior management approval.
  D. securely saved by recordings that have to be stored for at least a twelve-month period
  C. installed and located in such a way that reported transactions cannot be subsequently erased without senior management approval.

• Question 158:

  Where the matter of dealing for personal account is concerned, the Model Code recommends that

  A. Subject to local legal requirements, this matter is one for bank management to decide.
  B. Bank management should encourage such activities because it allows banks to monitor the gambling habits of their staff.
  C. Where this is allowed, bank management should have a clearly defined policy and written procedures.
  D. Bank management should allow staff to deal for their personal account on a case to case basis.
  C. Where this is allowed, bank management should have a clearly defined policy and written procedures.

• Question 159:

  What does the Model Code say about the responsibility of a broker in handling suspicious transactions?

  A. Suspicious transactions should be reported by the principals.
  B. Brokers need to make staff aware of the problem and exercise vigilance.
  C. A broker should report any suspicions about a transaction to the other counterparty.
  D. Brokers should advise clients to reject the name.
  B. Brokers need to make staff aware of the problem and exercise vigilance.

• Question 160:

  At the end of the day, you are short CHF 3,500,000.00 against SEK at 6.9275. You are asked to revalue your position at 6.9190. What is the resulting profit or loss?

  A. Profit of CHF 29,750.00
  B. Profit of SEK 29,750.00
  C. Loss of SEK 29,750.00
  D. Loss of CHF 29,750.00
  B. Profit of SEK 29,750.00