ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 271:

  A prime broker may not reject a trade given up if:

  A. the trade is not within the specified tenor limits
  B. the trade is not within the specified credit limits
  C. the trade details provided by the executing dealer and the client match
  D. the trade is a permitted transaction type as specified in the give-up agreement with the executing dealer
  D. the trade is a permitted transaction type as specified in the give-up agreement with the executing dealer

• Question 272:

  A closed position in a particular foreign currency exists:

  A. when the net spot position plus the forward position plus the delta equivalent of the foreign currency options book add up to zero
  B. when the forward purchases of a foreign currency are equivalent to the equity position in that same currency
  C. when the reverse repurchases of foreign currency are equal to the forward purchases of the functional currency
  D. when the maturity structure of the assets in one currency is closely matched to the maturity structure of liabilities in another
  A. when the net spot position plus the forward position plus the delta equivalent of the foreign currency options book add up to zero

• Question 273:

  Which of the following transactions would have the effect of lengthening the average duration of assets in the banking book?

  A. buying futures contracts on 30-year German Government bonds
  B. selling futures contracts on 30-year German Government bonds
  C. buying put options on 30-year German Government bonds
  D. buying a 3x6 forward rate agreement
  A. buying futures contracts on 30-year German Government bonds

• Question 274:

  How many GBP would you have to invest at 0.55% to be repaid GBP 2,000,000.00 (principal plus interest) in 90 days?

  A. GBP 1,997,253.78
  B. GBP 1,997,291.34
  C. GBP 1,997,287.67
  D. GBP 1,997,250.00
  B. GBP 1,997,291.34

• Question 275:

  Bank XYZ calls you for a quote in EUR/USD for EURO 20 million. If you decide to quote to Bank XYZ:

  A. You must be prepared to deal up to EUR 20 million.
  B. You may quote without stating the amount you are prepared to deal.
  C. You are only committed to deal in a marketable amount.
  D. None or the above.
  A. You must be prepared to deal up to EUR 20 million.

• Question 276:

  An option is:

  A. The right to buy or sell a commodity at a fixed price
  B. The right to buy a commodity at a fixed price
  C. The right but not the obligation to buy or sell a commodity at a fixed price
  D. The right but not the obligation to buy a commodity at a fixed price
  C. The right but not the obligation to buy or sell a commodity at a fixed price

• Question 277:

  If you sell forward USD to a client against EUR, what is the first thing you should do to cover your exposure to exchange rate movements?

  A. Sell and buy USD in the FX swap market
  B. Sell USD in the spot market
  C. Buy USD in the spot market
  D. Buy and sell USD in the FX swap market
  C. Buy USD in the spot market

• Question 278:

  Which of the following are quoted in terms of a discount rate?

  A. USTreasury bill
  B. CD
  C. Interbank deposit
  D. ECP
  A. USTreasury bill

• Question 279:

  You are quoted the following rates:

  Spot JPY/CHF 0.009520-25 6M JPY/CHF 10/7 At what rate can you buy 6-month outright CHF against JPY?

  A. 0.008520
  B. 0.009510
  C. 0.009515
  D. 0.009518
  B. 0.009510

• Question 280:

  What is interest rate immunization in the context of bank gap management?

  A. the strategy of holding more interest rate sensitive assets than interest rate sensitive liabilities
  B. the strategy of holding fewer interest rate sensitive assets than interest rate sensitive liabilities
  C. reducing the size of the balance sheet
  D. structuring a bank's portfolio so that its net interest revenue and/or the market value of its portfolio will not be adversely affected by changes in interest rates
  C. reducing the size of the balance sheet