ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 721:

  Which of the following is always a secured instrument?

  A. ECP
  B. Repo
  C. Interbank deposit
  D. CD
  B. Repo

• Question 722:

  If the value of the collateral in a repo has fallen during the term of the transaction, who suffers the loss?

  A. Seller
  B. Buyer
  C. Issuer
  D. It depends on the agreement between the buyer and seller
  A. Seller

• Question 723:

  Net funding requirements in liquidity management are determined by means of:

  A. adding up expected vault cash outflows, ATMs and other cash points operated by the institution across all branches
  B. establishing a forward cash flow plan that takes account of all contractual and behavioral cash flows related to assets and liabilities
  C. the net cash flow from investment activities in the IFRS consolidated Statement of Cash Flows for prior periods
  D. subtracting short-term liabilities from short-term assets
  B. establishing a forward cash flow plan that takes account of all contractual and behavioral cash flows related to assets and liabilities

• Question 724:

  You and a dealer at another bank have an informal bilateral reciprocal arrangement to quote each other two-way prices. During periods of high volatility, the other dealer refuses to quote to you. The Model Code states that

  A. The other dealer should act with honour, honesty and integrity.
  B. It is a purely matter for your two institutions.
  C. Such arrangements are not in any way enforceable or binding.
  D. All of the above.
  B. It is a purely matter for your two institutions.

• Question 725:

  You have quoted a Swiss customer spot USD/CHF as 1.3710-15, but he asks you to quote it as CHF/ USD. What do you quote?

  A. 0.7291-94
  B. 0.7294-91
  C. 1.3710-15
  D. None of these
  A. 0.7291-94

• Question 726:

  Which of the following is true?

  A. It is the responsibility of the broking firm to conduct due diligence before transacting a deal.
  B. All principals have the responsibility for assessing the creditworthiness of their counterparties or potential counterparties whether dealing direct or through a broking firm.
  C. The principal is obliged to take into account any information provided by a broker as they are bound by a professional relationship.
  D. All of the above.
  B. All principals have the responsibility for assessing the creditworthiness of their counterparties or potential counterparties whether dealing direct or through a broking firm.

• Question 727:

  You are short of 6 December EURODOLLAR futures contracts at 99.50. Yesterday, the closing price was 99.35. Today's closing price is 99.105. What variation margin will be due?

  A. You will have to pay USD 5,925.00
  B. You will receive USD 5,925.00
  C. You will have to pay USD 3,675.00
  D. You will receive USD 3,675.00
  C. You will have to pay USD 3,675.00

• Question 728:

  How can material divergences between the value of cash and collateral be managed in a documented sell/ buy-back?

  A. Margin maintenance
  B. Re-pricing
  C. Either of the above, but usually (a)
  D. Either of the above, but usually (b)
  D. Either of the above, but usually (b)

• Question 729:

  When may a broker assume a deal is closed?

  A. When one of the principals confirms the deal
  B. When the principals give a written undertaking for all deals done at the end of the day
  C. When acknowledgement is received from the principals that the deal is done
  D. When both back offices acknowledge the deal
  C. When acknowledgement is received from the principals that the deal is done

• Question 730:

  What is a long strangle option strategy?

  A. A short call option + short put option with a higher strike price than the call option
  B. A long call option + long put option with a lower strike price than the call option
  C. A short call option + short put option with a lower strike price than the call option
  D. A long call option + short put option with higher strike price than the call option
  B. A long call option + long put option with a lower strike price than the call option