ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 541:

  Banks have a fiduciary responsibility to ensure that clients have all necessary information to understand the transaction because this:

  A. Will encourage clients to do more business.
  B. Will help prevent potential litigation.
  C. Will help banks sell sophisticated risk management solutions.
  D. Is required by all regulators.
  B. Will help prevent potential litigation.

• Question 542:

  What is the ISO code for palladium?

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

• Question 543:

  If the daily 90% confidence level VaR of a portfolio is correctly estimated to be USD 5,000.00, one would expect that:

  A. in 1 out of 10 days, the portfolio value will decline by USD 5,000.00 or less.
  B. in 1 out of 90 days, the portfolio value will decline by USD 5,000.00 or less.
  C. in 1 out of 10 days, the portfolio value will decline by USD 5,000.00 or more.
  D. in 1 out of 90 days, the portfolio value will decline by USD 5,000.00 or more.
  C. in 1 out of 10 days, the portfolio value will decline by USD 5,000.00 or more.

• Question 544:

  A customer asks for a price in 3-month CHF/JPY. You quote 56/54. The customer deals at 54. What have you done?

  A. Bought CHF against JPY spot and sold JPY against CHF 3-month forward
  B. Sold CHF against JPY spot and bought CHF against JPY 3-month forward
  C. Bought CHF against JPY spot and sold CHF against JPY 3-month forward
  D. Bought JPY against CHF 3-month outright
  C. Bought CHF against JPY spot and sold CHF against JPY 3-month forward

• Question 545:

  In dealing terminology, what does "my risk" refer to?

  A. the market amount for which the quote is valid
  B. the acknowledgement by the broker that he may be stuffed
  C. the acknowledgement by the dealer receiving the quote that the rate may have to be re-quoted
  D. the quoting dealer cautions the receiver of the quote that the price may have to be re-quoted at the receiver's risk
  A. the market amount for which the quote is valid

• Question 546:

  Which party usually takes an initial margin in a classic repo?

  A. The buyer
  B. The seller
  C. Neither
  D. Both
  A. The buyer

• Question 547:

  What is the meaning of CCP within the Basel framework?

  A. Collateralized Clearing Process
  B. Central Clearing Counterparty
  C. Collateralized Counterparty Protection
  D. Collateralized Credit Protection
  B. Central Clearing Counterparty

• Question 548:

  How is a USD Overnight Indexed Swap (OIS) settled?

  A. Periodic exchange of fixed and floating payments up to and including maturity
  B. At maturity by net payment
  C. After maturity by exchange of fixed and floating payments
  D. Two days after maturity by net payment
  D. Two days after maturity by net payment

• Question 549:

  A bank quotes 3-month EUR deposits at 0.45%-0.55% to its broker. The broker lifts the bank's offer at 0.55%. Which of the following steps must the broker take?

  A. The broker must show the borrower's name to the lender first and disclose the lender's name only if the borrower is acceptable to the lender.
  B. The broker must show the lender's name to the borrower first and disclose the borrower's name only if the lender is acceptable to the borrower.
  C. The broker must show the borrower's and lender's names to each other at the same time.
  D. For marketing reasons, the broker can show the lender's name to the borrower at any time.
  A. The broker must show the borrower's name to the lender first and disclose the lender's name only if the borrower is acceptable to the lender.

• Question 550:

  You quote a customer spot AUD/USD at 1.0350-55. The T/N swap is quoted to you at 3/2. The customer asks to buy USD for value tomorrow. What rate should you quote him to break-even against the other rates?

  A. 1.0352
  B. 1.0353
  C. 1.0347
  D. 1.0348
  A. 1.0352