ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 701:

  What are financial market professionals not explicitly required by the Model Code to clarify and agree to in writing?

  A. that the customer understands he will be charged for advisory services that are provided
  B. that the customer understands the terms, conditions and risks of the transaction
  C. that the customer understands that any information or explanation should not be interpreted as investment advice or recommendations
  D. that the customer understands he is entering into the transaction at his own risk and for his own account.
  A. that the customer understands he will be charged for advisory services that are provided

• Question 702:

  Which of the following statements with respect to trading and broking ethics through the use of technology is the correct quote from the Model Code?

  A. Deliberate attempts at gaming and abuse using the flashing of orders without the intent to deal should be classified as proprietary trades.
  B. Management should ensure that the complete e-trading process, from pricing to risk impact through to settlement, conforms to recognized standards and market conventions.
  C. All bid-offers presented to electronic platforms should remain in the Matching System for no more than the minimum period of time defined within their respective Minimum Quote Life (MQL) rules.
  D. Trades which occur at off-market rates, by agreement between the two counterparts and as soon as practically possible, should stand and any profit be equitably divided between them.
  B. Management should ensure that the complete e-trading process, from pricing to risk impact through to settlement, conforms to recognized standards and market conventions.

• Question 703:

  You have made a price by a Japanese bank in (SD 2,000,000.00 against JPY. They made you 98.95-03 and you took the offer. USD/JPY is now quoted 98.78-81 and you square your position. What is your profit or loss?

  A. Profit of JPY 340.000
  B. Profit of JPY 1.500,000
  C. Loss of JPY 340.000
  D. LossofJPV 500.000
  D. LossofJPV 500.000

• Question 704:

  A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is 3.25%. If you held GBP 10,500,000.00 of this bond, what would be the cost of borrowing against it in the repo market?

  A. GBP 7,551.37
  B. GBP 6,544.52
  C. GBP 5,537.67
  D. GBP 1,006.85
  C. GBP 5,537.67

• Question 705:

  Are the forward points significantly affected by changes in the spot rate?

  A. Never
  B. For very large movements and longer terms
  C. Always
  D. Spot is the principal influence
  B. For very large movements and longer terms

• Question 706:

  The "spot basis" of a 2 against 4 months EUR/USD forward/forward swap is:

  A. usually the current spot EUR/USD mid-market rate
  B. commonly the prevailing 4-month forward EUR/USD mid-rate
  C. always the forward EUR/USD bid rate of the first swap leg
  D. generally the prevailing 2-month forward EUR/USD mid-rate
  D. generally the prevailing 2-month forward EUR/USD mid-rate

• Question 707:

  An option contract that gives the buyer the right to exercise the option at several distinct points during its life is called:

  A. European-style option
  B. American-style option
  C. Bermudan option
  D. Asian option
  C. Bermudan option

• Question 708:

  You are quoted the following market rates:

  Spot EUR/USD 1.3097-00 0/N EUR/USD swap 0.08/0.11 TIN EUR/USD swap 0.29/0.34 S/N EUR/USD swap 0.10/0.13

  Where can you buy EUR against USD for value tomorrow?

  A. 1.299971
  B. 1.309966
  C. 1.309971
  D. 1.310029
  C. 1.309971

• Question 709:

  VaR increases with:

  A. lower correlation of underlying risk factors
  B. a shorter time horizon
  C. a lower confidence level
  D. a higher confidence level
  C. a lower confidence level

• Question 710:

  Which of the following statements is an incorrect statement in respect of Model Code recommendations concerning electronic trading?

  A. It is recommended that ECNs have mechanisms that control price flashing
  B. A manual kill button that disables the system's ability to trade and cancels all resting orders may not be established without Central Bank approval
  C. The sudden withdrawal of a specific credit limit or limits in a tactical manipulation to mislead the market is unethical
  D. Algorithms require appropriate supervision performed by staff with commensurate levels of experience
  B. A manual kill button that disables the system's ability to trade and cancels all resting orders may not be established without Central Bank approval