ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 441:

  In the international market, a FRA in USD is usually settled with reference to:

  A. BBA LIBOR
  B. Fed funds
  C. ISDALIBOR
  D. EURIBOR
  A. BBA LIBOR

• Question 442:

  It is now permissible in most markets for brokers to be owned by banks and other principals. Where there is shared management, or a share holding or other investment in a broker by a counterparty:

  A. The broker is not obligated to reveal the connection provided Chinese Walls are in place.
  B. The broker is not obligated to reveal the connection in the professional market.
  C. The broker should advise the other counterparty of the connection.
  D. The matter is covered in the Model Code.
  C. The broker should advise the other counterparty of the connection.

• Question 443:

  Making interest rate swap transactions subject to agreement on documentation:

  A. Is recommended where the complications of the transaction warrant the practice.
  B. Is strictly forbidden.
  C. Is considered bad practice.
  D. Must have senior management approval.
  C. Is considered bad practice.

• Question 444:

  Click on the Exhibit Button to view the Formula Sheet. Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO /USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:

  A. The name of Banks A and B.
  B. The name of Bank B only.
  C. The amount that was bid but not the name of Bank A.
  D. None of the above
  B. The name of Bank B only.

• Question 445:

  Which of the following statements is true?

  A. Banks should not ask brokers to disclose details of third party transactions unless they are between overseas principals.
  B. Banks should not ask brokers to disclose details of third party transactions unless these transactions are already settled.
  C. Banks should not ask brokers to disclose transactions between third parties in any circumstances.
  D. Banks should not ask brokers for details of third party transactions unless senior management has approved.
  C. Banks should not ask brokers to disclose transactions between third parties in any circumstances.

• Question 446:

  Between which departments are clear and structured escalation procedures required for the management of incorrect funding balances?

  A. Nostro reconciliations, the Cash Management Department and Operations
  B. Front Office, the Cash Management Department and Operations
  C. Front Office, Nostro reconciliations and Operations
  D. Front Office, Nostro reconciliations and the Cash Management Department
  B. Front Office, the Cash Management Department and Operations

• Question 447:

  Using the following rates:

  spot GBP/CHF 2.3785-15 spot CHF/SEK 5.5975-85 3M GBP/SEK swap 725/690

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

  A. 13.3860-13.4020
  B. 13.2435-13.2615
  C. 13.2412-13.2638
  D. 13.2445-13.2605
  C. 13.2412-13.2638

• Question 448:

  What would happen to a bank's net interest income if it ran a zero gap in an environment of decreasing interest rates?

  A. Net interest income would increase slightly.
  B. Net interest income would increase considerably.
  C. Net interest income would decrease.
  D. Net interest income would hardly change at all.
  D. Net interest income would hardly change at all.

• Question 449:

  The mid-rate for USD/CHF is 0.9300 and the mid-rate for NZD/USD is 0.8560. What is the mid rate for NZD/CHF?

  A. 0.7961
  B. 1.0864
  C. 1.7860
  D. 1.2561
  A. 0.7961

• Question 450:

  The premium on an option contract is:

  A. The price of the underlying commodity at the time of the transaction
  B. The price at which the transaction on the underlying commodity will be carried out if and when the option is exercised
  C. The price the buyer of the option pays to the seller when entering into the options contract
  D. The price at which the two counterparties can close-out their position
  C. The price the buyer of the option pays to the seller when entering into the options contract