ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 601:

  You bought a USD 4,000000 6x9 FRA at 6.75%. The settlement rate is 3-month (90-day) BBA LIBOR, which is fixed at 5.50%. What is the settlement amount at maturity?

  A. You receive USD 12,330.46
  B. You pay USD 12,330.46
  C. You pay USD 12,163.81
  D. You receive USD 12,163.81
  B. You pay USD 12,330.46

• Question 602:

  Your are quoted the following rates:

  spot CHF/JPY 60.12-22 3M CHF/JPY 25.5/22.5 At what rate can you buy 3-month outright JPY against CHF?

  A. 79.995
  B. 79.965
  C. 79.895
  D. 79.865
  D. 79.865

• Question 603:

  What is the day count/annual basis convention for JPY money market deposits?

  A. ACT/365
  B. ACT/360
  C. ACT/ACT
  D. 30E/360
  B. ACT/360

• Question 604:

  A 3-month (90-day) USD deposit is 5.5625% and 6-month (180-day) USD deposit is 5.75%. What is the 3x6 USD deposit rate?

  A. 5.8342%
  B. 5.8561%
  C. 5.8425%
  D. 5.75%
  B. 5.8561%

• Question 605:

  Which of the following statements is correct regarding duration?

  A. It is a measure of the average price of a financial instrument.
  B. It doesn't take into account the timing and market value of cash flows.
  C. It increases if the average coupon increases.
  D. It decreases as maturity decreases
  D. It decreases as maturity decreases

• Question 606:

  Which of the following statements is correct?

  A. The best strategy to treat and mitigate risk is avoiding the risk by avoiding the business
  B. The best strategy to treat and mitigate risk is transferring the risk to another party, e. g. by transfer to an insurance company
  C. The best strategy to treat and mitigate risk is to establish the appropriate processes for identifying, assessing, managing, monitoring and reporting risks
  D. The best strategy to treat and mitigate risk is to reduce the negative effect of the risk, e. g. by hedging
  C. The best strategy to treat and mitigate risk is to establish the appropriate processes for identifying, assessing, managing, monitoring and reporting risks

• Question 607:

  A bank that has quoted a firm price is obliged to deal:

  A. At that price.
  B. At that price in a marketable amount.
  C. At that price in a marketable amount with an acceptable name.
  D. At that price in a marketable amount with an acceptable name and provided the market price has not moved excessively.
  C. At that price in a marketable amount with an acceptable name.

• Question 608:

  The seller of a call option has:

  A. Substantial opportunity for gain and limited risk of loss
  B. Substantial risk of loss and substantial opportunity for gain
  C. Limited risk of loss and limited opportunity for gain
  D. Substantial risk of loss and limited opportunity for gain
  D. Substantial risk of loss and limited opportunity for gain

• Question 609:

  Under Basel rules the risk weight for MA-rated claims on corporate in the standardized approach

  A. 0%
  B. 15%
  C. 20%
  D. 75%
  C. 20%

• Question 610:

  Whose compliance rules, regulations and best practices should be followed in FX electronic trading?

  A. solely those of the electronic trading platforms vendors
  B. exclusively ACI's Model Code Best Practices
  C. ACI's Model Code Best Practices and ICMA's Market Practice and Regulatory Policy
  D. the electronic trading platforms vendors' and the ACIs Model Code Best Practices guidelines
  B. exclusively ACI's Model Code Best Practices