ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 251:

  You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10 million interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 4.95%. How would you hedge the swap using FRAs? How to hedge an IRS with a strip of FRAs?

  A. buy a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
  B. sell a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
  C. buy a strip of 6x12, 12x10 and 16x24 FRAs
  D. sell a strip of 6x12, 12x18 and 18x24 FRAs
  D. sell a strip of 6x12, 12x18 and 18x24 FRAs

• Question 252:

  Which one of the following bullion coins has a 999.9/1000 gold purity (.9999 fineness)?

  A. the Canadian "Maple Leaf"
  B. the South African "Krugerand"
  C. the American "Gold Eagle"
  D. the United Kingdom "Sovereign"
  A. the Canadian "Maple Leaf"

• Question 253:

  If EUR/USD is quoted to you as 1.1050-53, does this price represent?

  A. The number of EUP per USD
  B. The number of USD per EUR
  C. Depends on whether the price is being quoted in Europe or the US
  D. Depends on whether the price is being quoted interbank or to a customer
  B. The number of USD per EUR

• Question 254:

  Any breaches in confidentiality should be:

  A. documented and reported to the local regulator
  B. communicated to local staff by a confidential internal circular
  C. investigated immediately according to a properly documented procedure
  D. reported to the ACI's Committee for Professionalism to investigate and advise accordingly
  C. investigated immediately according to a properly documented procedure

• Question 255:

  You hear from several counterparties that a major market participant has taken major losses on long USD/ JPY positions. You know the reports are untrue, as you have in fact bought large amounts of USD/JPY from that very firm, which means that the impact of the reports on the market would be helpful to your position.

  A. As you have heard the reports from other parties, you are entitled to pass them on to market news services.
  B. As you have heard the reports from other parties, you are entitled to pass them on to other market participants.
  C. You should not pass any information you know to be false.
  D. You should contradict the reports.
  C. You should not pass any information you know to be false.

• Question 256:

  You are quoted the following market rates:

  Spot AUD/USD 1.0380-85 0/N AUD/USD swap 2.42/2.35 TIN AUD/USD swap 0.82/0.79 S/N AUD/USD swap 0.80/0.77

  Where can you buy AUD against USD for value tomorrow?

  A. 1.038579
  B. 1.038582
  C. 1.038418
  D. 1.038421
  B. 1.038582

• Question 257:

  Forward points represent:

  A. The expected appreciation or depreciation of the base currency
  B. The expected appreciation or depreciation of the quoted currency
  C. Largely, the interest rate differential between two currencies
  D. Solely, the interest rate differential between two currencies
  C. Largely, the interest rate differential between two currencies

• Question 258:

  A dealer does the following deals in EUR/USD:

  buys EUR 1 m at 11020 sells EUR 3 m at 1.1022 buys EUR 2 m at 1.1002 buys EUR 1.5 m at 1.1012

  What position does the dealer now have?

  A. Long EUR 1.5 m at 1.0984
  B. Short EUP 1.5 m at 1.1036
  C. Long EUR 1.5 m at 1.1012
  D. Short EUR 3.0 mat 1.1025
  A. Long EUR 1.5 m at 1.0984

• Question 259:

  Click on the Exhibit Button to view the Formula Sheet. If you bought USD 2,000,000 against CHF at 1.1020, USD 3,000,000 at 1.1040 and USD 5,000,000 at 1.1032, what is the average rate of your position?

  A. 1.1030
  B. 1.1035
  C. 1.1028
  D. 1.1032
  D. 1.1032

• Question 260:

  You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced that the story is true, but have a friend at another bank who you know has very large exposures to this firm and would be seriously damaged by a default. What advice does the Model Code give?

  A. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should not be passed on in any circumstances.
  B. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be discussed only with great care.
  C. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be reported to the regulator in order to provide warning of possible systemic problems.
  D. You have a duty to warn counterparties but should make clear that the information is unsubstantiated.
  B. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be discussed only with great care.