ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 181:

  What rates should a panel bank contribute to the EURIBOR fixings?

  A. The offer side of the quotes it is making to other banks
  B. The offer side of the quotes which it is receiving from other banks
  C. The offer side of the interbank quotes it observes being made by prime banks
  D. The offer side of the quotes it has actually borrowed at
  C. The offer side of the interbank quotes it observes being made by prime banks

• Question 182:

  You are the fixed-rate payer in a plain vanilla interest rate swap. If your counterparty defaults, your exposure at default is:

  A. greater, the higher the market swap rate and the shorter the term
  B. lower, the lower the market swap rate and the shorter the term
  C. lower, the lower the market swap rate and the longer the term
  D. greater, the higher the market swap rate and the longer the term
  D. greater, the higher the market swap rate and the longer the term

• Question 183:

  The Liquidity Coverage Ratio (LCR) in Basel III:

  A. is a new rule that compares liquid asset levels in banks to their available equity capital
  B. spells out a modernized system for calculating the required minimum reserve that banks must hold at the central bank
  C. compares liquid and reliably liquidating assets to expected cash outflows from specified run-off rates for various liability classes under a short-term stress scenario
  D. tied directly into the internal ratings-based approach for determining the liquidity of credit- counterparties
  B. spells out a modernized system for calculating the required minimum reserve that banks must hold at the central bank

• Question 184:

  The torward points are calculated from:

  A. The level of interest rates in the base currency
  B. The level of interest rates in the quoted currency
  C. The interest rates in the two currencies
  D. Your expectations of the future spot rate
  C. The interest rates in the two currencies

• Question 185:

  Which of the following statements is correct?

  A. Unilateral collateral obligations to sovereign counterparties provide liquidity to banks.
  B. Under Basel III commercial banks are most likely to incur lower costs to service their sovereign clients.
  C. While banks usually do not call for collateral from sovereign counterparties, they must provide collateral for the offsetting hedge transactions which are undertaken with commercial counterparties.
  D. Uncollateralised exposures to sovereign counterparties will not require additional regulatory capital to be set aside against potential credit losses
  C. While banks usually do not call for collateral from sovereign counterparties, they must provide collateral for the offsetting hedge transactions which are undertaken with commercial counterparties.

• Question 186:

  What is the minimum basis on which a BCP should be updated and tested?

  A. Every 6 months
  B. Yearly
  C. Whenever the BCP procedures are changed
  D. Every 3 months
  B. Yearly

• Question 187:

  The process of confirming trades is a function that can be performed by:

  A. any dealer as long as he/she is not a party to the trade
  B. staff in the back-office/operations who are independent of the trade
  C. staff in the dealing room who are not dealing
  D. any staff outside the dealing room
  B. staff in the back-office/operations who are independent of the trade

• Question 188:

  Click on the Exhibit Button to view the Formula Sheet, If GBP/USD is 1.5350-53 and USD/JPY is 106.50- 53, what is GBP/JPY?

  A. 163.48-56
  B. 163.51-52
  C. 69.36-39
  D. 69.36-39
  A. 163.48-56

• Question 189:

  A negative yield curve is one in which:

  A. Longer rates are lower than short rates
  B. Forward exchange rates are at a discount
  C. Short term rates are lower than long
  D. Forward exchange rates are a premium
  A. Longer rates are lower than short rates

• Question 190:

  The mid-rate for USD/CHF is 1.3950 and the mid-rate for AUD/USD is 0.7060. What is the midrate for CHF/AUD?

  A. 0.9849
  B. 1.0154
  C. 1.9759
  D. 0.5061
  A. 0.9849