ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 531:

  Which one of the following is a major objective of ACI-The Financial Markets Association?

  A. to promote globalization and deregulation of the financial markets
  B. to maintain the professional level of competence and to disseminate a high level of ethical and professional behavior
  C. to act as the official international market regulator in the absence of government regulation
  D. to become the sole global corporation of wholesale financial market professionals
  B. to maintain the professional level of competence and to disseminate a high level of ethical and professional behavior

• Question 532:

  Which of the following functions does a to-party repo agent not perform?

  A. It checks the eligibility and sufficiency of collateral
  B. It can impose an initial margin on behalf of the buyer and manages margin calls
  C. It manages substitution of collateral on behalf of the seller
  D. It participates in the risk of transactions if one of the parties defaults
  D. It participates in the risk of transactions if one of the parties defaults

• Question 533:

  Which of the following statements about requirements for limit setting is correct?

  A. In the case of trading transactions, counterparty limits are to be set by the front office and issuer limits are to be set by the back office
  B. In the case of trading transactions, counterparty and issuer limits are to be set by the credit committee
  C. In the case of trading transactions, counterparty limits are to be set by a front office vote and market risk limits are to be set by the back office
  D. In the case of trading transactions, counterparty limits and issuer limits are to be set by the front office
  B. In the case of trading transactions, counterparty and issuer limits are to be set by the credit committee

• Question 534:

  What happens when a coupon is paid on bond collateral during the term of a classic repo?

  A. Nothing
  B. A margin call is triggered on the seller
  C. A manufactured payment is made to the seller
  D. Equivalent value plus reinvestment income is deducted from the repurchase price
  C. A manufactured payment is made to the seller

• Question 535:

  A long collar is:

  A. A purchase of a cap and a sale of a floor
  B. A purchase of a floor and a sale of a cap
  C. A purchase of a cap and a purchase of a floor
  D. A sale of a cap and a sale of a floor
  A. A purchase of a cap and a sale of a floor

• Question 536:

  A bank borrowing USD for 12 months and lending them for 6 months creates:

  A. Forward-forward loan
  B. Forward-forward deposit
  C. Negative gap
  D. An over-lent position
  B. Forward-forward deposit

• Question 537:

  Which of the following is true?

  A. The CME eurodollar futures contract has a tick value (for one full basis point equivalent) of USD25 and a face value of USD 1,000,000
  B. The Euronext. LIFFE EURIBOR futures contract has a tick value (for one full basis point equivalent) of EUR25 and a face value of EUR 1,000,000
  C. The Euronext.LIFFE CHF futures contract has a tick value (for one full basis point equivalent) of CHF25 and a face value of CHF 1,000,000
  D. All of the above
  D. All of the above

• Question 538:

  If GBP/USD is 1.5350-53 and USD/JPY is 97.50-53, what is GBP/JPY?

  A. 149.66-74
  B. 149.69-71
  C. 63.52-53
  D. 63.51-54
  A. 149.66-74

• Question 539:

  What does the Model Code recommend regarding the practice of "name switching/substitution"?

  A. Dealers may seek a compensation payment in favor of the bank or an adjustment to brokerage bills from the broker for switching names.
  B. If requested by a broker to clear a transaction through name switching, a dealer must ensure that such activities have the prior approval of senior management.
  C. The practice of name switching/substitution is neither acceptable nor desirable.
  D. Name switching/substitution transactions should be executed as promptly as possible not considering credit limits and policy guidelines.
  B. If requested by a broker to clear a transaction through name switching, a dealer must ensure that such activities have the prior approval of senior management.

• Question 540:

  What should a broker do if his quoted price is hit simultaneously by several dealers for a total amount greater than that for which the price concerned was valid?

  A. allot the amount for which the price is valid pro rata amongst some principals in accordance with the amount proposed by each and inform the other dealers that "nothing was done"
  B. decide which principals he will allot the amount for which the price is valid and inform the other dealers that "nothing was done"
  C. evenly allocate the amount for which the price is valid amongst all the principals and inform all the relevant dealers
  D. apportion the amount for which the price is valid pro rata amongst all the principals concerned in accordance with the amount proposed by each and inform all the relevant dealers
  D. apportion the amount for which the price is valid pro rata amongst all the principals concerned in accordance with the amount proposed by each and inform all the relevant dealers