ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 341:

  If USD/JPY is quoted to you as 98.10-15 and USD/CHF as 0.9294-99, what is the rate at which you can buy CHF against JPY?

  A. 105.50
  B. 105.61
  C. 10555
  D. 0.009474
  B. 105.61

• Question 342:

  As to general risk management principles, the Model Code mentions that the organizationalstructure should ensure independent risk management and controls. Which one of the following is not among those controls?

  A. open and effective communication channels between all levels of staff and cross-functions should be maintained.
  B. regular internal audits should be carried out together with trading and risk management to ensure early identification of internal control weaknesses
  C. complete segregation of duties between the front, middle and back office activities
  D. a separate system for independent monitoring to ensure compliance with the risk management framework should be in place
  B. regular internal audits should be carried out together with trading and risk management to ensure early identification of internal control weaknesses

• Question 343:

  Using the following rates: Spot GBP/CHF1.4235-55 Spot CHF/SEK6.8815-45 3M GBP/SEK swap 140/150

  What is the price for 3-month outright GBP/SEK?

  A. 9.8141-9.8246
  B. 9.8108-9.8279
  C. 9.8098-9.8289
  D. 9.8151-9.8236
  A. 9.8141-9.8246

• Question 344:

  Name switching is:

  A. the practice of a dealer attempting to replace one customer by a new one in a previously dealt transaction
  B. the practice of a broker having to show a new name to the dealer, although he was full on the first name presented to him
  C. the practice of a broker attempting to substitute a third name between the two original counterparties to clear the transaction
  D. the practice of a broker attempting to show a substitution name to get out of a situation in which he was stuffed by a dealer
  C. the practice of a broker attempting to substitute a third name between the two original counterparties to clear the transaction

• Question 345:

  Under Basel rules the meaning of CCF is:

  A. Currency Conversion Factor
  B. Credit Conversion Factor
  C. Credit Contribution Factor
  D. Credit Collateralization Factor
  B. Credit Conversion Factor

• Question 346:

  Which of the following is true regarding the consummation of a deal?

  A. verbal agreements are considered binding
  B. written confirmations always override terms verbally agreed to
  C. deals agreed to verbally can be done subject to documentation
  D. verbal agreements are never to be considered legally binding
  C. deals agreed to verbally can be done subject to documentation

• Question 347:

  The intrinsic value of a long call option:

  A. Falls and rises with the price of the underlying commodity, but is always positive
  B. Rises if the price of the underlying commodity falls and vice versa
  C. Depends solely on the volatility of the price of the underlying commodity
  D. Becomes negative if the market price of the underlying commodity falls below the strike price of the option
  A. Falls and rises with the price of the underlying commodity, but is always positive

• Question 348:

  If you sell USD 3-month forward to a client against EUR, what should you do to hedge your position?

  A. Buy USD spot, and buy and sell a 3-month EUR/USD FX swap
  B. Sell EUR/USD in the spot market, borrow EUR for 3 months and lend USD for 3 months
  C. Sell a 3-month EUR/USD outright forward
  D. Any of the above
  D. Any of the above

• Question 349:

  Which of the following statements is true concerning dealing and rollovers at non-current rates?

  A. When setting the rates for an FX swap to extend the maturity, the spot rate should be fixed immediately within the current spread
  B. Where the use of non-current rates may be necessary, they should only be entered into with the prior explicit permission of the quoting party's senior management
  C. Dealing and rollovers at non-current rates are relatively common market practice and therefore should not be treated differently from any other transaction
  D. Dealing and rollovers at non-current rates are forbidden as they can help perpetrate fraud and tax evasion
  A. When setting the rates for an FX swap to extend the maturity, the spot rate should be fixed immediately within the current spread

• Question 350:

  You are quoted the following market rates: Spot USD/JPY 123.65 1M (30-day) USD. 2.15% 1M (30-day)JPY 0.10%

  What is 1-month USD/JPY?

  A. 123.44
  B. 123.65
  C. 123.86
  D. 123.90
  A. 123.44