ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 331:

  A 3-month (91-day) UK Treasury bill with a face value of GBP 50,000,000.00 is quoted at a yield of 4.25%. How much is the bill worth?

  A. GBP 47,875,000.00
  B. GBP 49,462,847.22
  C. GBP 49,470,205.48
  D. GBP 49,475,760.27
  D. GBP 49,475,760.27

• Question 332:

  Today is the fixing date for a 6x9 FRA that you sold at 2.55%. BBA LIBOR fixes at 2.7175%. Which of the following is true?

  A. You will pay a net settlement amount
  B. You will receive a net settlement amount
  C. There will be an exchange of gross interest payments in 2 business days
  D. There will be an exchange of gross interest payments in 3 months
  A. You will pay a net settlement amount

• Question 333:

  Today, you sold 10 December EURODOLLAR futures contracts at 99.50. The closing price is fixed by the exchange at 99.375. What variation margin will be due?

  A. You will have to pay USD 312.50
  B. You will receive USD 312.50
  C. You will have to pay USD 3,125.00
  D. You will receive USD 3,125.00
  D. You will receive USD 3,125.00

• Question 334:

  A bank expects interest rates to fall with a parallel downward shift in the yield curve. What action should the bank take, if it wants to benefit from this view?

  A. increase the maturity of its liabilities
  B. reduce the maturity of its asset portfolio
  C. runazerogap
  D. lengthen the maturity of its asset portfolio
  D. lengthen the maturity of its asset portfolio

• Question 335:

  If EUR/USD is quoted to you as 1.3030-40 and GBP/USD as 1.5320-30, at what rate can you sell GBP and buy EUR?

  A. 0.8500
  B. 0.8506
  C. 0.8512
  D. 0.8505
  C. 0.8512

• Question 336:

  Does the slope of the interest yield curve typically have a substantial impact on a bank's net interest margin?

  A. No, it doesn't, since the slope of the yield cure is unrelated to the spread between short-term and long- term interest rates.
  B. No, it doesn't. There isn't any link at all between the slope of the interest yield curve and a bank's net interest margin.
  C. Yes it does. In banking, long-term rates usually apply to bank deposits and money market borrowings whereas short-term interest rates are attached to loans and securities.
  D. Yes it does. Long-term rates usually apply to a bank's assets (loans, securities, etc.) and the short term interest rates are generally attached to liabilities (deposits, money market borrowings, etc.).
  D. Yes it does. Long-term rates usually apply to a bank's assets (loans, securities, etc.) and the short term interest rates are generally attached to liabilities (deposits, money market borrowings, etc.).

• Question 337:

  Which of the following is a characteristic of all liquid assets under Basel III?

  A. uncertainty of valuation
  B. high correlation with risky assets
  C. listed on a developed and recognized exchange
  D. readily marketable
  D. readily marketable

• Question 338:

  Which of the following are specifically quoted in terms of a yield-to-maturity?

  A. US Treasury bill
  B. CD
  C. Interbank deposit
  D. USCP
  B. CD

• Question 339:

  What is the amount of the principal plus interest due at maturity on a 1-month (32-day) deposit of USD 50,000,000.00 placed at 0.37%?

  A. EUR 50,015,416.67
  B. EUR 50,016,219.18
  C. EUR 50,016,444.44
  D. EUR 50,016,958.33
  C. EUR 50,016,444.44

• Question 340:

  You quote a price to a broker on EUR 100 million. Your price is hit for EUR 50 million. What does the Model Code say about this situation?

  A. You have a right to qualify your quotes in terms of amounts, if you do so when you make the price.
  B. You have a right to qualify your quotes in terms of amounts, provided the amounts are marketable.
  C. You have a right to qualify your quotes in terms of amounts, once you have discovered the name of the counterparty for credit reasons.
  D. You have a right to qualify your quotes in terms of amounts.
  A. You have a right to qualify your quotes in terms of amounts, if you do so when you make the price.