ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 11:

  The two-week repo rate for the 5.25% Bund 2011 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000.00, but insist on an initial margin of 2%. You would earn repo interest of:

  A. EUR 337,874A0
  B. EUR 342,947.58
  C. EUR 337,739.24
  D. EUR 342,810.40
  A. EUR 337,874A0

• Question 12:

  What type of institution is the typical issuer of bank bills?

  A. Credit institution
  B. lnvestment bank
  C. Corporate
  D. All of the above
  C. Corporate

• Question 13:

  The columns below list short-term cash rates on 3rd April and 3rd F1ay 3rd April 3rd May

  

  Describe the shape of the short-term segment of the yield curve on 3' April using market terminology. In addition, describe the change in the shape of the curve between 3rd April and 3rd May.

  A. Positive, steepening
  B. Positive, flattening
  C. Inverted, steepening
  D. Inverted, flattening
  C. Inverted, steepening

• Question 14:

  If I say that I have "bought and sold" EUR/USD in an FX swap, what have I done?

  A. Bought EUR and sold USD spot, and sold FUR and bought USD forward
  B. Bought EUR/USD spot and sold EUR/USD forward
  C. Taken a EUR loan in exchange for making a USD loan with the same counterparly
  D. All of the above
  D. All of the above

• Question 15:

  Which of the following risks is best mitigated by CLS?

  A. currency risk
  B. operational risk
  C. liquidity risk
  D. settlement risk
  D. settlement risk

• Question 16:

  Which of the following statements is false? The repo legal agreement between the two parties concerned should:

  A. enable the parties to comply with any capital adequacy requirements
  B. provide for the absolute transfer of title to securities
  C. provide for the calculation of initial consideration of the repo transaction
  D. detail the course of action in the case of defaults, for example the rights and obligations of the counterparties and the full set-off of claims between the parties
  C. provide for the calculation of initial consideration of the repo transaction

• Question 17:

  What is one of the responsibilities of the Middle Office according to the Model Code?

  A. Sending settlement instructions
  B. Investigating settlement discrepancies
  C. Keeping a contact list of all back office staff of the bank's counterparties
  D. Exchanging standard settlement instructions (SSIs)
  B. Investigating settlement discrepancies

• Question 18:

  3-month EUR/USD FX swaps are quoted to you at 8/12. If the "points are in your favor", what have you done?

  A. Bought and sold 3-month EUR/USD through the swap
  B. Sold and bought 3-month EUR/USD through the swap
  C. Made the quote
  D. Cannot say
  A. Bought and sold 3-month EUR/USD through the swap

• Question 19:

  From the following GBP deposit rates:

  1M (31-day) GBP deposits 3.15% 2M (61-day) GBP deposits 3.25% 3M (91-day) GBP deposits 3.41% 4M (120-day) GBP deposits 3.56% 5M (152-day) GBP deposits 3.73% 6M (182-day) GBP deposits 3.90%

  calculate the 3x4 forward-forward rate.

  A. 3.410%
  B. 3.977%
  C. 3.996%
  D. 3.997%
  D. 3.997%

• Question 20:

  An FX forward outright has been dealt for a value date which is subsequently declared to be a bank holiday. According to the Model Code, the exchange rate for the deal:

  A. should be adjusted to take account of the change in value date
  B. cannot be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep the original rate
  C. must be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep the original rate
  D. should be adjusted if the adjustment is for two days or longer but not if it is for only one day
  A. should be adjusted to take account of the change in value date