ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 511:

  A broker offers a dealer an incentive in the form of a reduction to the agreed schedule of brokerage between the firms.

  A. This is a normal volume discount.
  B. The offer requires approval in writing by both senior managements.
  C. The offer requires agreement in writing between the broker and the dealer.
  D. This is illegal.
  B. The offer requires approval in writing by both senior managements.

• Question 512:

  What does the term "mine" mean when given in response to an FX spot quotation?

  A. I buy the base currency at the bid rate.
  B. I buy the base currency at the offer rate.
  C. I buy the counter-currency at the offer rate.
  D. I sell you the base currency at the bid rate,
  B. I buy the base currency at the offer rate.

• Question 513:

  Which of the following is not the responsibility of the asset and liability committee (ALCO)?

  A. ensure that compliance is carried out efficiently
  B. set limits on borrowing in the short-term markets to fund long-term lending
  C. develop, evaluate, monitor and approve strategies related to risk due to imbalances in the asset and liability structure of the balance sheet
  D. report to the board of directors
  C. develop, evaluate, monitor and approve strategies related to risk due to imbalances in the asset and liability structure of the balance sheet

• Question 514:

  Voice-brokers in spot FX act as:

  A. Proprietary traders
  B. Market-makers
  C. Matched principals
  D. Agents
  D. Agents

• Question 515:

  When is interest conventionally due on a 3-year interbank eurodollar deposit?

  A. At maturity
  B. Annually
  C. Semi-annually
  D. Quarterly
  B. Annually

• Question 516:

  What is the ISO code for platinum?

  A. XAU
  B. XAG
  C. XPT
  D. XPD
  C. XPT

• Question 517:

  A CD can usually only be issued by what type of institution?

  A. Credit institution
  B. Investment bank
  C. Discount house
  D. Corporate
  A. Credit institution

• Question 518:

  The Interest Rate Parity Theorem states that:

  A. Interest rates in different currencies will tend to move into line with each other over time
  B. Interest rates in different currencies differ due to differences in expectations about inflation
  C. Selling a low interest rate currency to invest a high interest rate currency will only be profitable if one hedges the currency risk
  D. Selling a low interest rate currency to invest in a high interest rate currency should not be profitable if one hedges the currency risk
  D. Selling a low interest rate currency to invest in a high interest rate currency should not be profitable if one hedges the currency risk

• Question 519:

  Clients of a voice-broker quote EUR/GBP at 0.8345-50, 0.8346-51, 0.8348-53 and 0.8349-53. What will be the broker's price?

  A. 0.8345-53
  B. 0.8345-50
  C. 0.8349-50
  D. 0.8349-53
  C. 0.8349-50

• Question 520:

  The Committee for Professionalism strongly recommends intra-day oral deal checks to help reduce the number and size of differences, particularly when dealing through voice-brokers, for deals involving foreign counterparties, in faster

  moving markets such as FX and when dealing in other instruments which have very short settlement periods.

  This checking should:

  A. Be carried out at least three times a day.
  B. Be agreed between the parties.
  C. Be done at the end of each day.
  D. Be decided by the broker.
  B. Be agreed between the parties.