ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 221:

  Under Basel rules the risk weight for claims on unrated sovereigns and their central banks in the standardized approach is:

  A. 50%
  B. 75%
  C. 100%
  D. 150%
  D. 150%

• Question 222:

  Spot EUR/USD is 1.3050-53 and EUR interest rates are lower than USD interest rates. Would you expect the forward points for EUR/USD to be:

  A. added to spot
  B. subtracted from spot
  C. a negative value
  D. Insufficient information to decide
  A. added to spot

• Question 223:

  Four banks provide you with quotes in CHF/SEK. Which is the best price for you to buy SEK?

  A. 6.5825
  B. 6.5820
  C. 6.5815
  D. 6.5830
  D. 6.5830

• Question 224:

  What is a long straddle option strategy?

  A. A long call option + long put option with the same strike prices
  B. A short call option + short put option with the same strike prices
  C. A long call option + short put option with the same strike prices
  D. A short call option + long put option with the same strike prices
  A. A long call option + long put option with the same strike prices

• Question 225:

  You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10,000,000.00 interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 4.95%. You expect 6month LIBOR in 6 months to fix at 5.25%, in 12 months at 5.35% and in 18 months at 5.40%. What do you expect the net settlement amounts to be over the next 2 years? Assume 30-day months.

  A. Pay 250.00, receive 1,250.00, receive 1,750.00, receive 2,000.00
  B. Receive 250.00, pay 1,250.00, pay 1,750.00, pay 2,000.00
  C. Pay 2,500.00, receive 12,500.00, receive 17,500.00, receive 20,000.00
  D. Receive 2,500.00, pay 12,500.00, pay 17,500.00, pay 20,000.00
  C. Pay 2,500.00, receive 12,500.00, receive 17,500.00, receive 20,000.00

• Question 226:

  Which of the following definitions of a nostro account is correct?

  A. A nostro account is an account held by a bank in a foreign country in the banks domestic currency.
  B. A nostro account is an account held by a bank in a foreign country for cash collateralising OTC derivative positions with banks in that country.
  C. A nostro account is an account held by a bank in a foreign country in the currency of that country.
  D. A nostro account is an account held by a bank in its home country in a foreign currency.
  C. A nostro account is an account held by a bank in a foreign country in the currency of that country.

• Question 227:

  Which of the following statements about hedge accounting is not correct?

  A. A prerequisite for hedge accounting is that a hedging instrument is designated as an offset to changes in the fair value or cash flows of a hedged item.
  B. Hedge accounting enables gains and losses on a hedging instrument to be recognised in the income statement in the same period as offsetting losses and gains on the hedged item.
  C. If one of the criteria for hedge accounting is no longer met, there is an option to discontinue hedge accounting.
  D. Strict criteria must be met at inception and throughout the term of the hedge relationship in order for hedge accounting to be applied.
  C. If one of the criteria for hedge accounting is no longer met, there is an option to discontinue hedge accounting.

• Question 228:

  Which of the following is not in the Model Code?

  A. Banks and brokers should record, by tapes or other such means, conversations between dealing counterparties.
  B. There is no need to inform new counterparties and clients that conversations will be recorded.
  C. On completion of recordings, tapes should be kept for a period sufficient to enable the details of any transaction contained therein to be confirmed.
  D. The storage of recorded tapes should be strictly managed to prevent their contents from being tampered with.
  B. There is no need to inform new counterparties and clients that conversations will be recorded.

• Question 229:

  The Model Code recommends that when banks accept a stop-loss order

  A. Management must ensure ongoing lines of communication are in place between the parties.
  B. Management must report to the central bank.
  C. Management allows only experienced dealers to take such orders.
  D. Bank staff must secure the approval of the counterpartqs management to accept such orders.
  A. Management must ensure ongoing lines of communication are in place between the parties.

• Question 230:

  If spot GBP/CHF is quoted 1.4275-80 and the 3-month forward outright is 1.4254-61, what are the forward points?

  A. 19/21
  B. 2.1/1.9
  C. 21/19
  D. 0.21/0.19
  C. 21/19