ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 671:

  Who takes the counterparty risk on the seller in a to-party repo?

  A. The buyer
  B. The to-party agent
  C. A third-party guarantor
  D. A central clearing counterparty
  A. The buyer

• Question 672:

  Which one of the following statements about interest rate movements is true?

  A. An upward parallel shift of interest rates will cause a loss of income if the rate-sensitivity of a bank's liabilities is higher than the rate-sensitivity of its assets.
  B. A bank will lose income if it has more rate-sensitive liabilities than rate-sensitive assets.
  C. Falling interest rates will always result in mark-to-market profits on short positions in fixed rate securities.
  D. Rising interest rates can result in mark-to-market losses on fixed-rate assets.
  D. Rising interest rates can result in mark-to-market losses on fixed-rate assets.

• Question 673:

  Which type of repo is the most risky for the buyer?

  A. Delivery repo
  B. HIC repo
  C. TO-party repo
  D. There is no real difference
  C. TO-party repo

• Question 674:

  In spite of having agreed to a deal, dealers are not bound to its terms if it is "subject to documentation". What position does the Model Code take with regard to this practice?

  A. The practice of making a transaction subject to documentation is not regarded as good practice.
  B. It urges dealers to be bear in mind that this is a common practice for capital market deals.
  C. The Model Code does not comment on the matter.
  D. It recommends that national ACI Associations deal with this issue according to their local customs.
  A. The practice of making a transaction subject to documentation is not regarded as good practice.

• Question 675:

  You are quoted the following rates: Spot GBP/CHF 1.4535-45 3M GBP/CHF swap 22/19

  At what rate can you sell GBP against CHF outright 3-month?

  A. 1.4523
  B. 1.4526
  C. 1.4513
  D. 1.4516
  C. 1.4513

• Question 676:

  What ought to be done in the event a trade erroneously occurs at an off-market rate?

  A. By agreement between the two counterparties, the trade must be cancelled as soon as practically possible since a rate amendment is prohibited.
  B. By agreement between the two counterparts, the trade should, as soon as practically possible, either be cancelled or have its rate amended to an appropriate market rate.
  C. The off-market rate should be adjusted as soon as possible to the appropriate current market rate and a new authenticated SWIFT confirmation sent immediately to the counterparty.
  D. Nothing need be done, since once a trade is agreed to by the front office it is a binding agreement for both counterparties.
  B. By agreement between the two counterparts, the trade should, as soon as practically possible, either be cancelled or have its rate amended to an appropriate market rate.

• Question 677:

  What is the value date of a 6-month outright forward FX transaction dealt today, if todays spot date is Monday, 30th June? Assume there are no bank holidays.

  A. 27th December
  B. 30th December
  C. 31stDecember
  D. 1st January
  C. 31stDecember

• Question 678:

  With regard to operational risk awareness, which of the following best practices is incorrect?

  A. A report describing operational risks, the most significant incidents and corrective plans of action should be established on a quarterly basis.
  B. It is good practice to collect and analyze incidents and near-misses so as to set up preventive action plans for the future.
  C. Every time a report describing operational risks is produced, it should be provided to senior management.
  D. Whenever possible action plans should be put in place that mitigate operational risks that have been identified.
  A. A report describing operational risks, the most significant incidents and corrective plans of action should be established on a quarterly basis.

• Question 679:

  A 1-month (30-day) USCP with a race value of USD 5 million is quoted at a rate of discount of 2.31%. How much is the paper worth?

  A. USD 4,884,500.00
  B. USD 4,990,375.00
  C. USD 4,990.506.85
  D. USD 4,990,393.49
  B. USD 4,990,375.00

• Question 680:

  You have done the following deals in spot USD/JPY:

  Sold USD 5.0 million at 111.60 Bought USD 3.5 million at 111.20 Bought USD 2.0 million at 111.50 Sold USD 2.0 million at 111.55

  What position do you now have?

  A. Short USD 1.50 million at 112.60
  B. Short USD 3.50 million at 111.75
  C. Long USD 1.50 million at 111.10
  D. Long USD 3.50 million at 111.55
  A. Short USD 1.50 million at 112.60