ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 591:

  Which one of the formulae below is correct?

  A. Long a FRN + pay fixed on a swap = long a synthetic straight bond
  B. Long a FRN + receive floating on a swap = long a synthetic straight bond
  C. Long a FRN + pay floating on a swap = short a synthetic straight bond
  D. Long a FRN + pay floating on a swap = long a synthetic straight bond.
  D. Long a FRN + pay floating on a swap = long a synthetic straight bond.

• Question 592:

  You are quoted the following rates:

  Spot USD/JPY97.10-15 3M USD/JPY swap 9/6 Spot USD/CHF 0.9320-23 3M USD/CHF swap 11/8

  Where can you sell CHF against JPY 3-month outright?

  A. 104.14
  B. 104.21
  C. 104.23
  D. 104.30
  A. 104.14

• Question 593:

  In order to give a price in EUR/USD, the broker must:

  A. know whether the European Central Bank or the Federal Reserve is in the market before quoting
  B. be sure that the quoting bank's prices are not shared with other brokers
  C. get the price from a bank or a bid and an offer from different banks in order to make a two-way price, because the broker cannot make prices on his own
  D. make sure that the quoting banks have sufficient credit lines
  C. get the price from a bank or a bid and an offer from different banks in order to make a two-way price, because the broker cannot make prices on his own

• Question 594:

  An interest rate guarantee (IRG) is:

  A. AnFRA
  B. An option on an FRA
  C. A collar
  D. AnIRS
  B. An option on an FRA

• Question 595:

  Which of the following is a function of asset and liability management (ALM)?

  A. coordinated limit management of a financial institution's credit portfolio
  B. running a matched trading book
  C. monitoring credit quality of assets and establishing a early warning system
  D. managing the financial risk of the bank by protecting it from the adverse effects of changing interest rates
  B. running a matched trading book

• Question 596:

  You have quoted your customer the following eurodollar deposit rates:

  1M 5.375-25% 2M 5.4375-3125% 3M 5.5-375%

  The customer says, "I give you USD 20 million in the two's". What have you done?

  A. Borrowed USD 20 million at 5.3125%
  B. Lent USD 20 million at 5.4375%
  C. Borrowed USD 20 million at 5.4375%
  D. Lent USD 20 million at 5.3125%
  A. Borrowed USD 20 million at 5.3125%

• Question 597:

  If manual trade capture methods are used, when should deals be recorded in systems used for this purpose?

  A. The same day they are dealt
  B. Promptly
  C. Within 24 hours of execution
  D. Within an hour of execution
  B. Promptly

• Question 598:

  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 599:

  What is the result of combining a 1-month buy and sell FX swap with a 2-month sell and buy FX swap?

  A. a 1x2 FRA short position
  B. a 1- against 2-month buy and sell forward/forward FX swap
  C. a 1- against 2-month sell and buy forward/forward FX swap
  D. a 1- against 2-month forward/forward long position
  C. a 1- against 2-month sell and buy forward/forward FX swap

• Question 600:

  If a dealer has interest on one side, and the other side is dealt away, the broker should:

  A. Immediately put the price "under reference" and check with the dealer to ascertain his original intention.
  B. Cancel the order.
  C. Continue with the order.
  D. None of the above.
  A. Immediately put the price "under reference" and check with the dealer to ascertain his original intention.