ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 471:

  Is gambling or betting between market participants allowed?

  A. Yes, it is allowed for sporting events.
  B. Yes, it is allowed if no money is involved.
  C. Although not prohibited, it is strongly discouraged.
  D. It is allowed for purposes of charity.
  C. Although not prohibited, it is strongly discouraged.

• Question 472:

  The use of standard settlement instructions (SSI's) is strongly encouraged because:

  A. it reduces operational risk
  B. it splits differences arising from failed settlement between the two counterparties
  C. it removes the need for sending out SWIFT confirmations
  D. the use of SSI's secures the trading on more secure platforms
  A. it reduces operational risk

• Question 473:

  The use of standard settlement instructions (SSI's) is strongly encouraged because:

  A. It reduces operational risk.
  B. It splits differences arising from failed settlement between the two counterparties.
  C. It removes the need for sending out SWIFT payment authorisations.
  D. All of the above.
  A. It reduces operational risk.

• Question 474:

  What is a master agreement intended to do?

  A. Describe the parameters of a dealing relationship
  B. Set out the rights and obligations of two parties
  C. Apply to all transactions between two parties
  D. All of the above
  D. All of the above

• Question 475:

  Under the Model Code, if a broker shouts "done" or "mine" at the very moment a dealer shouts "off":

  A. No deal is done and the broker should inform both counterparties accordingly.
  B. The deal is done and the broker should inform both counterparties accordingly.
  C. The matter should be resolved in consultation with senior management of the 3 institutions.
  D. The ACI's Committee for Professionalism will investigate and advise accordingly.
  B. The deal is done and the broker should inform both counterparties accordingly.

• Question 476:

  What are 1MM dates?

  A. the tenth of the following months: March, June, September and December
  B. the third Wednesday of January, April, July and October
  C. the Monday before the third Wednesday of March, June, September and December
  D. the third Wednesday of March, June, September and December
  D. the third Wednesday of March, June, September and December

• Question 477:

  It is up to the vendors of electronic dealing platforms to ensure that dealers are trained to use their systems.

  A. Management should ensure dealers fully understand the systems they use and dealers should read the manuals.
  B. Management, dealers and vendors share responsibility.
  C. Dealers are required to pass the ACI Dealing Certificate before being allowed to access electronic dealing platforms.
  D. Given the wide range of electronic dealing platforms used by banks, it is the responsibility of the vendors to ensure individual users are adequately trained.
  A. Management should ensure dealers fully understand the systems they use and dealers should read the manuals.

• Question 478:

  A 6-month SEK/NOK Swap is quoted 140/150. Spot is 0.9445. Which of the following statements is correct?

  A. SEK interest rates are higher than NOK interest rates
  B. NOK interest rates are higher than SEK interest rates
  C. NOK interest rates are higher than USD interest rates
  D. SEK interest rates and NOK interest rates are converging
  B. NOK interest rates are higher than SEK interest rates

• Question 479:

  Bank B's price is shown by a broker to Bank A and is dealt by Bank A. If Bank A wants to increase the amount of the transaction, what is good market practice according to the Model Code:

  A. Bank A can call Bank B directly.
  B. Bank A should wait 10 minutes before calling Bank B.
  C. Bank A cannot increase the amount.
  D. Bank A should go back to the broker.
  D. Bank A should go back to the broker.

• Question 480:

  Which of the following is the best description of a "broken trade"?

  A. when a trade has been agreed to with dates (maturities) different from the standard dates
  B. when one of the parties to the deal unilaterally decides to withdraw from the on-going transaction
  C. when, due to a system break, one or both parties to the deal chooses to withdraw from the ongoing transaction
  D. when, due to a system break, one or both parties to the deal are unclear as to whether the deal has been done
  D. when, due to a system break, one or both parties to the deal are unclear as to whether the deal has been done