ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 161:

  Regarding access to production systems, which of the following is incorrect?

  A. Profiles for functions are encouraged and should be reviewed semi-annually by a manager.
  B. Developers should have unrestricted access to production systems.
  C. Access to production systems should be rigorously controlled.
  D. Users should not have access to change system functionalities.
  B. Developers should have unrestricted access to production systems.

• Question 162:

  Which of the following cannot produce a capital gain?

  A. Treasury bill
  B. CD
  C. ECP
  D. Classic repo
  D. Classic repo

• Question 163:

  All other things being equal the interest rate risk of a fixed coupon bond is:

  A. greater, the higher the coupon and the longer the term
  B. greater, the lower the coupon and the longer the term
  C. lower, the lower the coupon and the shorter the term
  D. lower, the higher the coupon and the longer the term
  B. greater, the lower the coupon and the longer the term

• Question 164:

  To curb attempted fraud, banks should:

  A. Require greater vigilance by the management and staff.
  B. Take particular care when the beneficiary is a third party to the deal.
  C. Ensure that details of all telephone deals which do not include pre-agreed standard settlement instructions are confirmed by telex or similar means without delay.
  D. All of the above.
  D. All of the above.

• Question 165:

  In the deposit broker market, which one of the following is not a valid reason for the proposed borrower to decline the lenders name?

  A. In the case of short date deposits, if the borrower is not prepared to repay the deposit prior to notice of receipt of the funds from the correspondent bank.
  B. The borrower has no lending line for the placer of the funds and does not wish to be embarrassed by being unable to reciprocate.
  C. If he secures a better rate elsewhere.
  D. The borrower would be in breach of internal or regulatory depositor concentration limitations.
  C. If he secures a better rate elsewhere.

• Question 166:

  Today's spot value date is the 30th of June. What is the maturity date of a 2-month EUR deposit deal today? Assume no bank holidays.

  A. 27th August
  B. 30th August
  C. 31st August
  D. 1 September
  C. 31st August

• Question 167:

  When you are accepting a stop loss order, you must:

  A. Ensure that your counterparty understands the terms under which your bank accepts the order.
  B. Ensure that your counterpart can be contacted in the event of unusual situations or events or extremely volatile market conditions.
  C. Ensure that your counterparty understands that any guarantee or fixed price execution requires agreement in writing.
  D. All of the above.
  C. Ensure that your counterparty understands that any guarantee or fixed price execution requires agreement in writing.

• Question 168:

  What does the Model Code recommend regarding "entertainment and gifts"?

  A. Management should monitor the form, frequency and cost of entertainment and gifts dealers receive, have a clearly articulated policy towards the giving/receipt of gifts and ensure the policy is enforced.
  B. As gifts and entertainment may be offered in the normal course of business, employees can offer inducements to conduct business and solicit them from the personnel of other institutions.
  C. Although management should not monitor the form, frequency or cost of entertainment/gifts dealers receive, they may have a policy towards the giving/receipt of gifts and ensure the policy is enforced.
  D. Gifts or entertainment should never be offered in the normal course of business, and employees must never offer any inducements to conduct business, nor solicit them from other institutions.
  C. Although management should not monitor the form, frequency or cost of entertainment/gifts dealers receive, they may have a policy towards the giving/receipt of gifts and ensure the policy is enforced.

• Question 169:

  From the following GBP deposit rates:

  1M (30-day) GBP deposits 0.45% 2M (60-day) GBP deposits 0.50% 3M (91-day) GBP deposits 0.55% 4M (123-day) GBP deposits 0.65% 5M (153-day) GBP deposits 0.70% 6M (184-day) GBP deposits 0.75%

  Calculate the 3x4 forward-forward rate.

  A. 0.60%
  B. 0.949%
  C. 1.074%
  D. 0.933%
  D. 0.933%

• Question 170:

  What is the risk of dealing through an agent with an unknown principal?

  A. You may not be able to ensure that your firm can avoid suspicion of trading on non-public information or other allegations of bad or illegal trading practice.
  B. You may not be able to net your exposure in an insolvency.
  C. You may not be able to net your exposure for capital adequacy purposes.
  D. All of the above.
  D. All of the above.