ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 711:

  What is the policy of the Model Code on drugs, alcohol and other substance abuse in the dealing room?

  A. Management is to proximately inform the local regulator of any suspected drug abuse in either the front office or operations department.
  B. The chief dealer must inform the ACI's Committee for Professionalism as soon as he suspects any drug or alcohol abuse in his dealing room.
  C. Policies should be developed and clearly announced, including penalties for individuals who are found to be substance abusers.
  D. Management should take all reasonable steps to stop the abuse of drugs, including alcohol and other substances.
  C. Policies should be developed and clearly announced, including penalties for individuals who are found to be substance abusers.

• Question 712:

  How frequently should business contingency procedures be tested and updated?

  A. quarterly tests I updates as needed
  B. at least every second year
  C. half-yearly tests / yearly updates
  D. at least yearly
  D. at least yearly

• Question 713:

  Which of the following are all goals of the originator of securitized assets?

  A. to increase funding diversification , to reduce funding costs, to achieve regulatory and accounting benefits, to increase the size of the balance sheet
  B. to increase funding diversification , to reduce funding costs, to achieve regulatory and accounting benefits
  C. to increase funding diversification , to reduce operational risk, to achieve regulatory and accounting benefits, to decrease the size of the balance sheet
  D. to increase funding diversification , to reduce operational risk, to achieve regulatory and accounting benefits, to increase the size of the balance sheet
  B. to increase funding diversification , to reduce funding costs, to achieve regulatory and accounting benefits

• Question 714:

  What is the probability of an `at-the-money' option being exercised?

  A. Less than 50% probability
  B. 50% probability
  C. More than 50% probability
  D. Zero probability
  B. 50% probability

• Question 715:

  Which of the following is true about interest rate swaps (IRS):

  A. Both parties know what their future payments will be at the outset of the swap
  B. There is payment of principal at maturity
  C. Payments are always made gross
  D. The fixed rate payer knows what his future payments will be at the outset of the swap
  D. The fixed rate payer knows what his future payments will be at the outset of the swap

• Question 716:

  What happens if an instruction remains unmatched and/or unsettled through CLS Bank?

  A. If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trades outside of CLS Bank on a net basis.
  B. If there is only one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally decide to settle the trade outside of CLS Bank on a net basis.
  C. If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trade outside CLS Bank on a gross basis.
  D. If there is more than one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally instruct the CLS Bank to settle the trades.
  C. If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trade outside CLS Bank on a gross basis.

• Question 717:

  The spot/next repo rate for the 5% Bund 2018 is quoted to you at 1.75-80%. You sell bonds with a market value of EUR 5,798,692.00 through a sell/buy-back. The Repurchase Price is:

  A. EUR 5,798,982
  B. EUR 5,799,497
  C. EUR 5,746,376
  D. EUR 5,000,694
  A. EUR 5,798,982

• Question 718:

  From 2019 on the total capital requirement for banks under Basel III will be defined as:

  A. 8% of RWA plus conservation buffer
  B. 10.5% of RWA plus conservation buffer
  C. 8% of RWA plus countercyclical buffer
  D. 10.5% of RWA plus countercyclical buffer
  D. 10.5% of RWA plus countercyclical buffer

• Question 719:

  A customer sells a 3-month Euro Swiss Franc (EUROSWISS) futures contract. Which of the following risks could he be trying to hedge?

  A. An increase in forward USD/CHF
  B. Falling CI-IF interest rates
  C. A decrease in forward USD/CHF
  D. Rising CHF interest rates
  D. Rising CHF interest rates

• Question 720:

  The primary issue for insuring prudent liquidity management in accord with the guidance provided by the Basel Committee (Basel II I Basel III) is:

  A. Tier 3 capital requirements held against liquidity risk.
  B. The nature and amount of high quality liquid assets a bank holds.
  C. Central bank internal management processes regarding open market operations.
  D. The transparent disclosure of illiquid on-balance sheet liabilities.
  B. The nature and amount of high quality liquid assets a bank holds.