ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 351:

  When performing a gap analysis, into which of the following time buckets should a 5-year floating-rate note with a 6-month LIBOR coupon be slotted?

  A. the 6-month bucket
  B. the 2.5-year bucket
  C. the 5-year bucket
  D. It should be weighted and apportioned in each of the time buckets in accord with the periodic coupon payments.
  A. the 6-month bucket

• Question 352:

  After having quoted a rate of 1.5005-10, the quoting bank says, "Your risk". This means:

  A. The quoted rate is subject to change at the risk of the price-taker
  B. The quoting bank is reminding you of the market risk of your potential trade
  C. This is a requirement of any market maker
  D. The market maker needs to check your credit limit
  A. The quoted rate is subject to change at the risk of the price-taker

• Question 353:

  You have borrowed at 3-month LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting:

  1x3 USD FRA 0.42-45% 1x4 USD FRA 0.54-58% 1x5 USD FRA 0.57-62%

  To hedge the next LIBOR fixing, you should:

  A. Sell a 1x3 FRA at 0.42%
  B. Buy a 1x3 FRA at 0.45%
  C. Buy a 1x4 FRA at 0.58%
  D. Sell a 1x4 FRA at 0.54%
  C. Buy a 1x4 FRA at 0.58%

• Question 354:

  When considering interest rate risk in the banking book, retail demand deposits without fixed contractual maturity:

  A. should be assumed to have zero duration
  B. should be treated like other instantly variable rate liabilities, such as overnight money market borrowing.
  C. should be assumed to have a low correlation with money market reference rates
  D. represent a minor contributor to interest rate risk and can safely be disregarded
  C. should be assumed to have a low correlation with money market reference rates

• Question 355:

  A 6-month (182-day) investment of CAD 15,500,000.00 yields a return of CAD 100,000.00. What is the rate of return?

  A. 1.32%
  B. 1.29%
  C. 1.28%
  D. 0.65%
  C. 1.28%

• Question 356:

  What is the purpose of a short straddle option strategy?

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

• Question 357:

  In the event that standard settlement instructions are provided by a third party, full authentication and authorization of those SSIs should be independently performed by?

  A. Sales I trading staff
  B. Operations staff
  C. Nostro staff
  D. Front office staff
  B. Operations staff

• Question 358:

  3-month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?

  A. unchanged
  B. 118/116
  C. 109/107
  D. 106/104
  B. 118/116

• Question 359:

  Hybex Electrics is a highly rated company with a considerable amount of fixed rate liabilities and would like to increase the percentage of floating rate debt. Which of the following is the best course of action?

  A. Hybex should become a payer of a fixed rate on a swap against receipt of LIBOR.
  B. Hybex should become a receiver of a floating rate on a swap against payment of a fixed rate
  C. Hybex should become a receiver of a fixed rate on a swap against payment of LIBOR D.
  D. Hybex should become a receiver of a floating rate on a swap against payment of LIBOR
  C. Hybex should become a receiver of a fixed rate on a swap against payment of LIBOR D.

• Question 360:

  A purchased 3X6 FRA should be reported in a gap report as

  A. a given deposit with a term of six months
  B. a taken deposit with a term of three months
  C. a given deposit with a term of three months and a taken deposit with a term of six months
  D. a taken deposit with a term of three months and a given deposit with a term of six months
  C. a given deposit with a term of three months and a taken deposit with a term of six months