ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 321:

  ACI's Committee for Professionalism will offer expert opinion in disputes between firms if:

  A. both parties to the dispute are members of the ACI and agree to submit the dispute to the ACI
  B. one of the counterparties requests the assistance of ACI's Committee for Professionalism
  C. the two counterparties are located in different financial centers
  D. the amount in dispute is more than USD 100,000.00 or equivalent
  B. one of the counterparties requests the assistance of ACI's Committee for Professionalism

• Question 322:

  The buyer of a USD/ARS NDF could be:

  A. a buyer of Argentine Pesos
  B. expecting a falling USD/ARS rate
  C. hedging against a weakening of the Argentine Peso
  D. speculating on an appreciation of the Argentine Peso
  C. hedging against a weakening of the Argentine Peso

• Question 323:

  Which of the following will tend to have the higher yield?

  A. Treasury bill
  B. Repo against Treasury bill collateral
  C. They have the same yield
  D. Cannot say
  B. Repo against Treasury bill collateral

• Question 324:

  Under Basel rules, what is the meaning of IRB?

  A. Internal Risk Based
  B. Internal Ratings Based
  C. Intrinsic Risk Based
  D. Internal Rule Based
  B. Internal Ratings Based

• Question 325:

  The exercise price in an option contract is:

  A. The price of the underlying instrument at the time of the transaction
  B. The price at which the transaction on the underlying instrument will be carried out if and when the option is exercised
  C. The price the buyer of the option pays to the seller when entering into the options contract
  D. The price at which the two counterparties can close-out their position
  B. The price at which the transaction on the underlying instrument will be carried out if and when the option is exercised

• Question 326:

  You bought USD 5,000,000 against EUR at 1.1037 and 3,000,000 at 1.1052. If the EUR/USD rate is now quoted 1.1015/17, and it you deal at that rate, what profitwould you make?

  A. Nil
  B. A profit of EUR 16,847.58
  C. A loss
  D. A profit of EUR 18,166.05
  B. A profit of EUR 16,847.58

• Question 327:

  Which of the following statements is correct?

  A. Hedging a long bond position with payer's swap involves basis risk
  B. Hedging the credit risk of an asset swap package with a credit default swap has no basis risk
  C. Basis risk is a result only of maturity mismatches
  D. Basis risk is a result only of duration mismatches.
  A. Hedging a long bond position with payer's swap involves basis risk

• Question 328:

  Which of the following scenarios offer an example of wrong way risk?

  A. A bank purchases credit protection on highly-rated tranches of US mortgage-backed securities from a US mortgage bank
  B. A bank sells protection on the iTraxx main index at a level of 25 bps and shortly afterwards the index crosses the 200 bps level
  C. A bank sells EUR put I USD call ATM options with an expiry date of 6 months and afterwards volatility moves up to substantially higher levels
  D. A bank enters into a receiver's swap while interest rates are increasing
  A. A bank purchases credit protection on highly-rated tranches of US mortgage-backed securities from a US mortgage bank

• Question 329:

  What are de minimis claims?

  A. claims of less than USD 100.00
  B. claims of less than USD 1,000.00
  C. claims of less than EUR 100.00
  D. claims of less than EUR 1,000.00
  B. claims of less than USD 1,000.00

• Question 330:

  What usually happens to the collateral in a tri-party repo?

  A. It is put at the disposal of the buyer
  B. It is held by the seller in the name of the buyer
  C. It is held by the tn-party agent in the name of the buyer
  D. It is frozen in the sellers account with the tri-panty agent
  C. It is held by the tn-party agent in the name of the buyer