ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 391:

  If you took a short position in USD/JPY, how could the Fed "squeeze" you?

  A. Raise USD interest rates
  B. Lower USD interest rates
  C. Lower reserve requirements
  D. It could not squeeze you
  A. Raise USD interest rates

• Question 392:

  What is a short strangle option strategy?

  A. A short call option + long put option with a higher strike price than the call option
  B. A long call option + long put option with a lower strike price than the call option
  C. A short call option + short put option with a lower strike price than the call option
  D. A long call option + long put option with higher strike price than the call option
  C. A short call option + short put option with a lower strike price than the call option

• Question 393:

  Which of the following is true?

  A. The 3-month Sterling (SHORT STERLING) futures contract has a basis point value of GBP 25.00 and a face value of GBP 1,000,000 .00
  B. The EUROYEN TIBOR futures contract has a basis point value of JPY 25,000 and a face value of JPY 1,000,000,000
  C. The CME EURODOLLAR futures contract has a minimum price interval of one-quarter basis point value (0.0025) for the nearest contract
  D. The 3-month EURIBOR futures contract has a minimum price interval of half a basis point value (0.0050) for the nearest contract
  C. The CME EURODOLLAR futures contract has a minimum price interval of one-quarter basis point value (0.0025) for the nearest contract

• Question 394:

  The use of mobile phones within the dealing room is not considered good practice except

  A. In volatile markets.
  B. When dealing with emerging markets.
  C. In an emergency.
  D. When quoting for information only.
  C. In an emergency.

• Question 395:

  The organisational structure of market participants should ensure a strict segregation between front and back office of:

  A. Duties and reporting lines.
  B. Systems.
  C. Career paths.
  D. All of the above.
  A. Duties and reporting lines.

• Question 396:

  What is the purpose of the Liquidity Coverage Ratio?

  A. to mitigate market replacement risk across markets
  B. to eliminate funding mismatches by establishing a minimum acceptable amount of stable funding
  C. to ensure that banks have enough high-quality liquid assets to survive a 30-day period of acute market stress
  D. to minimize duration risk on a bank's assets over a one-year horizon
  C. to ensure that banks have enough high-quality liquid assets to survive a 30-day period of acute market stress

• Question 397:

  Which of the following is issued by auction?

  A. Treasury bill
  B. CD
  C. BA
  D. USCP
  A. Treasury bill

• Question 398:

  A person who appears to be a technician asks for your help in accessing treasury systems as he has forgotten his list of access codes. The Model Code recommends:

  A. You should provide all reasonable assistance.
  B. You should report the request immediately to senior management.
  C. Do not get involved; you may be at risk.
  D. There is no recommendation in the Model Code.
  B. You should report the request immediately to senior management.

• Question 399:

  What is the purpose of an initial margin on a futures exchange?

  A. To cover losses incurred between variation margin payments
  B. To exclude retail investors
  C. To pay reserve requirements
  D. To cover fees due to the clearing house
  A. To cover losses incurred between variation margin payments

• Question 400:

  Which of the following is not a negotiable instrument?

  A. CD
  B. FRA
  C. BA
  D. ECP
  B. FRA