ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 451:

  For a bank to count funds as regulatory capital:

  A. There has to be an ultra long term maturity date
  B. The risk taken by the bank must be taken or shared by provider of the capital
  C. The funds must be in the form of pure equity
  D. The funds must be re-invested only in cash
  B. The risk taken by the bank must be taken or shared by provider of the capital

• Question 452:

  The Model Code stipulates that you have a right to qualify your quotes in terms of amounts:

  A. if you do so when you make the price
  B. provided the amounts are marketable
  C. once you have discovered the name of the counterparty for credit reasons
  D. at anytime
  A. if you do so when you make the price

• Question 453:

  On fixing date, the settlement payment of an NDF reflects the differential between the agreed forward rate and:

  A. the fixing spot rate
  B. the daily high
  C. the days' average rate
  D. the average rate over the NDF period
  A. the fixing spot rate

• Question 454:

  Confirmations must be sent out

  A. Immediately after the deal is done.
  B. As quickly as possible after the deal is done.
  C. By electronic media only, e.g. fax, telex.
  D. Not later than the value date of the first leg of the transaction.
  B. As quickly as possible after the deal is done.

• Question 455:

  Complete the following sentence. If a bank has an asset repricing in 6 months funded by a liability repriced in 3 months:

  A. the bank would benefit from higher interest rates
  B. the bank could hedge this interest rate risk with a 3x6 derivative
  C. the bank will make mark-to-market losses if rates decrease
  D. the bank could hedge this interest rate risk by selling a 6x9 derivative
  A. the bank would benefit from higher interest rates

• Question 456:

  Which of the following market participants would least likely be a user of repo?

  A. Investment funds
  B. Credit institutions and central banks
  C. Corporates
  D. Retail and private customers
  D. Retail and private customers

• Question 457:

  Selling a FRA has the same interest rate exposure as:

  A. Opening a positive gap
  B. Going over-borrowed
  C. Making a forward-forward loan
  D. Taking a forward-forward deposit
  C. Making a forward-forward loan

• Question 458:

  Which of the following statements about leverage ratios under Basel III is correct?

  A. The leverage ratio is the ratio of the bank's Tier 1 Capital to total assets of the bank, excluding its off- balance sheet exposures and derivatives.
  B. The purpose of introducing a leverage ratio is to avoid the build-up of excess leverage that could potentially lead to a "credit crunch" in stressed conditions.
  C. The leverage ratio under Basel III must be higher than 4%.
  D. The leverage ratio is the ratio of the bank's Tier 1 and Tier 2 Capital to total assets of the bank, including its off-balance sheet exposures and derivatives.
  B. The purpose of introducing a leverage ratio is to avoid the build-up of excess leverage that could potentially lead to a "credit crunch" in stressed conditions.

• Question 459:

  In GBP/CHF, you are quoted the following prices by four different banks. You are a buyer of CHF. Which is the best quote for you?

  A. 1.4340
  B. 1.4343
  C. 1.4337
  D. 1.4335
  B. 1.4343

• Question 460:

  You have done the following deals in spot USD/JPY:

  Sold USD 5.0 million at 130.60 Bought USD 3.5 million at 130.20 Bought USD 2.0 million at 130.50 Sold USD 2.0 million at 130.55

  What is your net position and average rate?

  A. Short USD 1.5 million at 130.46
  B. Long USD 1.5 million at 130.46
  C. Short USD 1.5 million at 131.60
  D. Long USD 1.5 million at 131.60
  C. Short USD 1.5 million at 131.60