ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 291:

  The use of mobile phones from within the dealing room for transacting business:

  A. Is not considered good practice.
  B. Is accepted in case of direct deal input into the bank's system.
  C. Is accepted for senior dealers.
  D. Is accepted for hedging transactions.
  A. Is not considered good practice.

• Question 292:

  A Eurozone-based bank that is liability-sensitive to market interest rate changes might reduce interest rate risk by:

  A. entering into a pay fixed I receive variable standard interest rate swap
  B. entering into a receive fixed I pay variable amortizing interest rate swap
  C. entering into a EUR/USD FX swap
  D. entering into a receive fixed I pay variable standard interest rate swap
  A. entering into a pay fixed I receive variable standard interest rate swap

• Question 293:

  Which of the following statements is true?

  A. Prices quoted by brokers should be taken to be firm in marketable amounts unless otherwise qualified
  B. Prices quoted by brokers should be taken to be indicative in marketable amounts unless otherwise qualified
  C. Prices quoted by brokers should be taken to be firm in amounts of 1,000,000.00 of the quoted currency unless otherwise qualified
  D. Prices quoted by brokers should be taken to be indicative in amounts of 1,000,000.00 of the base currency unless otherwise qualified
  A. Prices quoted by brokers should be taken to be firm in marketable amounts unless otherwise qualified

• Question 294:

  You are a sales person in a bank and are about to sell a structured note to a non-professional customer. Before finalizing the transaction you remember to double-check the customer's charter. You learn that the customer is not allowed to invest in structured products. The risk you have avoided is most likely to be classified as:

  A. credit risk
  B. liquidity risk
  C. legal risk
  D. refinancing risk
  C. legal risk

• Question 295:

  The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75-80%. As collateral, you are offered EUR25 million nominal of the 5.5% OAT April 2006, which is worth EUR 28,137,500. If you impose an initial margin of 1%, the Repurchase Price is:

  A. EUR 27,947,276.43
  B. EUR 27,946,077.08
  C. EUR 27,950,071.43
  D. EUR 27,948,871.97
  D. EUR 27,948,871.97

• Question 296:

  The Model Code recommends that, in the case or complaints about transactions, management should:

  A. Ensure complaints are investigated by the senior management or a firm not involved in the disputed transaction.
  B. Ensure complaints are rairly and independently investigated, in the first instance, by the ACIs Committee for Professionalism.
  C. Ensure complaints are investigated by representatives of a broking firm not directly involved in the disputed transaction and selected by both parties to the dispute.
  D. Ensure complaints are fairly and independently investigated, whenever practicable, by staff not directly involved in the disputed transaction.
  D. Ensure complaints are fairly and independently investigated, whenever practicable, by staff not directly involved in the disputed transaction.

• Question 297:

  What is the purpose of a long strangle option strategy?

  A. To anticipate very low volatility in the price of the underlying commodity
  B. To anticipate moderately high volatility in the price of the underlying commodity
  C. To anticipate moderate volatility in the price of the underlying commodity
  D. To anticipate very high volatility in the price of the underlying commodity
  D. To anticipate very high volatility in the price of the underlying commodity

• Question 298:

  What is the buyers primary risk in a repo?

  A. The credit risk on the collateral
  B. The credit risk on the repo counterparty
  C. The legal risk on the contract
  D. The operational risk on margin maintenance
  B. The credit risk on the repo counterparty

• Question 299:

  Today's date is Thursday 12th December. What is the spot value date? Assume no bank holidays.

  A. 14th December
  B. 15th December
  C. 16th December
  D. 17th December
  C. 16th December

• Question 300:

  If there is a need for assistance to help resolve a dispute over differences between a broker and a bank, the Model Code suggests turning to:

  A. the monetary authority in the country where the broker is located
  B. the banking association in the country where the bank is located
  C. the Committee for Professionalism of the ACI
  D. the local foreign exchange market committee
  C. the Committee for Professionalism of the ACI