ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 381:

  When initially negotiating an interest rate swap, a principal indicated his intention to assign it to a third party. In executing such a transfer:

  A. The principal is entitled to provide the name of the original counterparty to the transferee.
  B. The principal is entitled to provide the name of the transferee to the original counterparty.
  C. The principal should obtain the consent of the transferee before releasing its name.
  D. The principal should obtain the consent of the original counterparty before releasing its name to the transferee.
  C. The principal should obtain the consent of the transferee before releasing its name.

• Question 382:

  Where sale and repurchase agreements or stock borrowing or lending transactions are entered into:

  A. screen services, brokers and other third party providers can all be useful sources of data
  B. For periods less than one month, the maturity date will be the first date that is a business day that is within one, seven, fourteen days from the value date, but when near the month end must never be a date in the next calendar month
  C. Inter-dealer brokers or the automated trading system need not be notified when participants attempt to utilize odd settlement dates
  D. It is not recommended that legal opinion should be obtained on the enforceability of the contract
  A. screen services, brokers and other third party providers can all be useful sources of data

• Question 383:

  In a dispute between the dealer and a broker, the Model Code recommends that this should be referred in the first instance to:

  A. Central bank.
  B. Senior management of the bank and the brokerage firm.
  C. Head of compliance.
  D. ACI's Committee for Professionalism (CFP).
  B. Senior management of the bank and the brokerage firm.

• Question 384:

  What kind of information should dealers and brokers take care when relaying?

  A. Information that could be damaging to a third party
  B. Unsubstantiated rumours
  C. Unsubstantiated information that they suspect may be inaccurate and damaging to a third party
  D. Price-sensitive information
  C. Unsubstantiated information that they suspect may be inaccurate and damaging to a third party

• Question 385:

  A USD deposit traded in London between two German banks is cleared:

  A. Wherever the parties agree
  B. In London
  C. In NewYork
  D. In Frankfurt
  C. In NewYork

• Question 386:

  Which one of the following statements is incorrect under Basel III?

  A. Instruments qualifying for recognition as Tier 1 or Tier 2 capital will be substantially restricted.
  B. Basel III does not include Tier 3 capital
  C. There is a distinction between upper Tier 2 and lower Tier 2 capital
  D. New non-common equity Tier 1 and Tier 2 instruments are more loss-absorbing than previously
  C. There is a distinction between upper Tier 2 and lower Tier 2 capital

• Question 387:

  A customer based in the UK exports automotive parts to the US. His main competitor is in France. What type of exposure to currency risk is posed by movements in EUR/USD?

  A. Transaction exposure
  B. Translation exposure
  C. Economic exposure
  D. None
  C. Economic exposure

• Question 388:

  Which one of the following statements about claims is true?

  A. Claims are not expected to be submitted after 15 days from the actual settlement date.
  B. Claims of less than USD 5,000.00 are not expected to be submitted.
  C. Claims are calculated on the full principal amount of the failed transaction. Interest rates are imposed by the agent banks, unless a higher negotiated rate is to be applied.
  D. Acknowledgement of receipt of a claim should be confirmed within 48 hours by email or SWIFT.
  C. Claims are calculated on the full principal amount of the failed transaction. Interest rates are imposed by the agent banks, unless a higher negotiated rate is to be applied.

• Question 389:

  Which of the following is part of the typical scope of Asset Liability Management (ALM)?

  A. Selling distressed assets and investing in bank liabilities trading at distressed levels.
  B. Making sure that fixed assets are depreciated according to the applicable tax code.
  C. Planning the maturity structure and net funding requirements arising from banking book and trading book transactions.
  D. Planning the liability structure and net funding requirements arising from trading book assets carried at amortized cost.
  C. Planning the maturity structure and net funding requirements arising from banking book and trading book transactions.

• Question 390:

  Market participants should, where activity justifies it, aim to reduce settlement and related credit risk on currency transactions by:

  A. Establishing realistic daylight limits for counterparties.
  B. Monitoring all payments to counterparties who are known to be experiencing difficulties.
  C. Establishing legally binding bilateral netting agreements with counterparties or participating in a multilateral netting system.
  D. Seeking pre-payment.
  C. Establishing legally binding bilateral netting agreements with counterparties or participating in a multilateral netting system.