ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 191:

  What recommendation does the Model Code make in cases of market disruption?

  A. Market participants should strictly adhere to the rules issued by local regulators, supervisors or central banks in order to maintain efficiency and avoid disputes.
  B. Even if local provisions are in place, market participants should only adhere to the ACI best practices of the Model Code in order to maintain efficiency and avoid disputes.
  C. Participants must at all times adhere to the rules issued by local regulators, supervisors or central banks even if these rules or procedures conflict with any provision of an existing written agreement.
  D. Parties may unilaterally decide whether they wish to adhere to the terms of the agreement or to amend the terms of the transaction to follow the relevant procedure.
  A. Market participants should strictly adhere to the rules issued by local regulators, supervisors or central banks in order to maintain efficiency and avoid disputes.

• Question 192:

  When constructing a gap report, how would a EUR 25,000,000.00 long position in 6x12 FRA be categorized?

  A. as a EUR 25,000,000.00 6-month liability and a EUR 25,000,000.00 12-month asset
  B. as a EUR 25,000,000.00 12-month liability and a EUR 25,000,000.00 6-month asset
  C. as a EUR 12,500,000.00 6-month liability and a EUR 12,500,000.00 12-month asset
  D. as a EUR 12,500,000.00 6-month asset and a EUR 12,500,000.00 12-month liability
  B. as a EUR 25,000,000.00 12-month liability and a EUR 25,000,000.00 6-month asset

• Question 193:

  Automated trading systems for interbank spot FX display the best prices entered into the systems by users and:

  A. Display the names of those users along their prices
  B. Offer pre-trade anonymity to users quoting prices
  C. Offer pre and post-trade anonymity to users quoting prices
  D. Offer users the choice of whether to remain anonymous
  B. Offer pre-trade anonymity to users quoting prices

• Question 194:

  If you are trading spot on an ATS (Automated Trading System) and see a price for EUR/USD of 1.3050-53. If you hit the button marked "YOURS", what have you done?

  A. Bought EUR at 1.3053
  B. Bought USD at 1.3053
  C. Sold EUR at 1.3050
  D. Sold USDatl.3050
  C. Sold EUR at 1.3050

• Question 195:

  What recommendation does the Model Code make to banks accepting a stop-loss order?

  A. The Model Code emphasizes the importance of clear, concise documentation and on-going lines of communication.
  B. Bank management must guarantee a fixed price execution to the counterparty.
  C. The Model Code recommends that only experienced dealers should be allowed to take such orders.
  D. Bank staff must secure the approval of the counterparty's management to accept such orders.
  A. The Model Code emphasizes the importance of clear, concise documentation and on-going lines of communication.

• Question 196:

  Which of the following statements about requirements for dealing with limit violations is correct?

  A. Financial institutions have to establish procedures for handling limit breaches that are in accordance with their decision-making hierarchy.
  B. If a partial limit violation does not exceed the overall limit, no reaction is required.
  C. The definition of escalation levels is not required in order to react appropriately to different sorts and intensities of limit breaches.
  D. It is adequate and proper to define reactions only to standard cases of limit violations.
  A. Financial institutions have to establish procedures for handling limit breaches that are in accordance with their decision-making hierarchy.

• Question 197:

  When dealing with customers, financial market professionals are advised by the Model Code to clarify that all transactions are entered into solely at each partys risk by explicitly agreeing in writing that:

  A. The customer understands the structure of the transaction.
  B. The customer has made its own assessment and independent decision to enter into the transaction and is doing so at its own risk and for its own account.
  C. No fiduciary or advisory relationship exists between the parties, and all the information is has received is not to be construed as investment advice or a recommendation to transact.
  D. All of the above.
  D. All of the above.

• Question 198:

  You deal over the phone with a counterparty. The subsequent confirmation differs from the terms agreed verbally. What is the result?

  A. The confirmation takes precedence as it is a written contract.
  B. The matter will have to be submitted to arbitration in order to establish the mutual intent of the parties.
  C. It depends on local law.
  D. The verbal agreement is binding.
  D. The verbal agreement is binding.

• Question 199:

  If GSP/USD is quoted to you at 1.61 20-30, how much GSP would you receive if you sold USD 2000,000?

  A. 1,239,925.60
  B. 1,237,873.80
  C. 1,240,694.79
  D. 1,242,720.50
  A. 1,239,925.60

• Question 200:

  Which of the following both provide credit enhancement to a true-sale securitization?

  A. reserve account and third-party insurance
  B. subordinated tranches and creditworthiness of the originator
  C. creditworthiness of the originator and third-party insurance
  D. reserve account and interest rate hedging
  A. reserve account and third-party insurance