ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 21:

  Your broker quotes you EUR/USD at 1.3425-28. You respond by saying "yours". Which one of the following statements is true?

  A. You are committed to sell a marketable EUR amount unless the quote was for a specific amount.
  B. You are committed to sell to the counterparty his full EUR amount subject to credit limits on the counterparty.
  C. You are committed to sell EUR up to the amount permitted by your credit limits on the counterparty.
  D. You are committed to sell a marketable USD amount unless the quote was for a specific amount.
  A. You are committed to sell a marketable EUR amount unless the quote was for a specific amount.

• Question 22:

  You are quoted the following market rates:

  Spot EUR/USD 1.3150 3M (92-day) EUR 0.20% 3M (92-day) USD 0.44%

  What is 3-month EUR/USD?

  A. 1.3159
  B. 1.3158
  C. 1.3142
  D. 1.3230
  B. 1.3158

• Question 23:

  Assuming a flat yield curve in both currencies, when quoting a 1- to 2-month forward FX time option price in a currency pair trading at a discount to a customer:

  A. you would take as bid rate the bid side of the 2-month forward and as offered rate the offered side of the 1-month forward
  B. you would take as bid rate the offered side of the 2-month forward and as offered rate the bid side of the 1-month forward
  C. you would take as bid rate the offered side of the 1-month forward and as offered rate the offered side of the 2-month forward
  D. you would take as bid rate the bid side of the 1-month forward and as offered rate the bid side of the 2- month forward
  A. you would take as bid rate the bid side of the 2-month forward and as offered rate the offered side of the 1-month forward

• Question 24:

  The outright forward FX rate is not a function of which of the following?

  A. The interest rates of the two currencies
  B. The spot exchange rate
  C. Thedaycount
  D. Market expectation
  D. Market expectation

• Question 25:

  What are the secondary market proceeds of a CD with a face value of EUR 5,000,000.00 and a coupon of 3% that was issued at par for 182 days and is now trading at 3% but with only 7 days remaining to maturity?

  A. EUR 4,997,085.03
  B. EUR 5,000,000.00
  C. EUR 5,071,086.45
  D. EUR 5,072,874.16
  D. EUR 5,072,874.16

• Question 26:

  If a broker refers to "the payer of 5-year euro at 4.12", what is this party doing?

  A. Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.
  B. Paying a fixed rate of 4.12% per annum on an actual/actual basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.
  C. Paying a 5-year euro deposit and receiving a rate of interest of 4.12% on an actual/360 basis. Taking a 5-year euro deposit and paying a rate ol interest of 4.12% on an actual/360 basis.
  A. Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.

• Question 27:

  If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, the correct value date will be:

  A. the value date of the financial centre that is open
  B. the next business day of the financial centre which is closed
  C. the next business day when both New York and Tokyo are open
  D. the previous business day when both New York and Tokyo are open
  C. the next business day when both New York and Tokyo are open

• Question 28:

  What is an outright forward FX transaction?

  A. A spot sale (purchase) and a forward purchase (sale)
  B. A spot sale (purchase) and a forward sale (purchase)
  C. An exchange of currencies on a date beyond spot and at a price fixed today
  D. An exchange of currencies on a date beyond spot
  C. An exchange of currencies on a date beyond spot and at a price fixed today

• Question 29:

  Under Basel rules, expected credit loss is a function of which of the following sets of parameters:

  A. 1 minus recovery rate, probability of default and exposure at default
  B. exposure at origination, exposure at default and loss given default
  C. loss given default, 1 minus recovery rate and exposure at default
  D. exposure at origination, recovery rates and probability of default
  B. exposure at origination, exposure at default and loss given default

• Question 30:

  If EUR/USD is 1.3025-28 and the 6-month swap is 15.50/17, what is the 6-month outright price?

  A. 1.3042-1.30435
  B. 1.30405-1.3045
  C. 1.30095-1.3011
  D. 1.4575- 1.4728
  B. 1.30405-1.3045