ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 41:

  A broker can consider a deal as done if:

  A. He is confident that the dealer will not back out of the deal.
  B. Both parties have established credit lines for each other.
  C. One party acknowledges interest.
  D. He receives verbal acknowledgement from the dealer.
  D. He receives verbal acknowledgement from the dealer.

• Question 42:

  Which of the following statements reflects the Model Code on gambling or betting amongst market participants?

  A. Gambling and betting between market participants should be strongly discouraged.
  B. Gambling and betting between market participants can be allowed if it is monitored by management.
  C. Gambling and betting between market participants should be forbidden.
  D. All of the above.
  A. Gambling and betting between market participants should be strongly discouraged.

• Question 43:

  The spot/week repo rate for the 4.25% OAT 2015 is quoted to you at 2.35-38%. You buy bonds with a market value of EUR 3,295,500.00 through a sell/buy-back. The Repurchase Price is:

  A. EUR 3,297,004.19
  B. EUR 3,297,005.86
  C. EUR 3,297,025.09
  D. EUR 3,296,985.23
  B. EUR 3,297,005.86

• Question 44:

  Under Basel rules, what is the meaning of LGD?

  A. Loss Given Default
  B. Liquidity Given Distress
  C. Limit Given Default
  D. Loss Given Distress
  A. Loss Given Default

• Question 45:

  When would an exporter commonly use an NDF?

  A. when receiving THB in 1 month
  B. when receiving HKD in 2 months
  C. when receiving PHP in 2 bank business days
  D. when receiving KRW in 3 months
  D. when receiving KRW in 3 months

• Question 46:

  The delta of an at-the-money long call option is:

  A. Between +0.5 and +1
  B. +0.5
  C. Between 0 and +0.5
  D. Zero
  B. +0.5

• Question 47:

  When a deal is done via a broker:

  A. it need not be confirmed between the counterparties as the broker confirms it immediately with both counterparties
  B. it should also be confirmed directly between the two counterparties
  C. it is important to note that broker confirmations are bilateral confirmations between the principals of the trade
  D. the dealer should obtain acknowledgement that the deal has been agreed to but may assume agreement to the trade in the absence of such acknowledgement
  B. it should also be confirmed directly between the two counterparties

• Question 48:

  Which of the following statements about operational risk awareness is correct?

  A. It is good practice to collect and disclose incidents and near-misses for the future benefit of the professional community.
  B. It is good practice to collect and analyze incidents and near-misses so as to set up preventive action plans for the future.
  C. A report describing operational risks should be made at the request of the front office.
  D. A report describing operational risks should be made at least once a year and provided to the front office.
  B. It is good practice to collect and analyze incidents and near-misses so as to set up preventive action plans for the future.

• Question 49:

  Gambling or betting amongst market participants has obvious dangers and:

  A. Should be forbidden.
  B. Should be strongly discouraged.
  C. Should be monitored by management.
  D. All of the above.
  B. Should be strongly discouraged.

• Question 50:

  When a broker makes an error on payment instructions The Model Code recommends that

  A. The broker remains liable for the resulting difference for 3 full business days following the date of the transaction.
  B. The broker remains liable until the error is discovered.
  C. The broker is not liable at all.
  D. The broker's liability should be limited as he is not in a position to directly rectify the situation.
  D. The broker's liability should be limited as he is not in a position to directly rectify the situation.