ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 731:

  Under Basel Rules, the Basic Indicator Approach is a regulatory framework for:

  A. liquidity risk
  B. business risk
  C. operational risk
  D. funding risk
  B. business risk

• Question 732:

  Which of the following statements about the Liquidity Coverage Ratio is correct?

  A. The LCR is a measure to ensure that the reserve of high quality liquid assets is sufficient to cover short term demand for liquidity in a stress situation.
  B. the ratio (cash outflow in a 30-day stress period divided by high quality liquid assets) has to be greater than 100%.
  C. Covered bonds are class 1 assets.
  D. Obligations issued by central banks or government agencies are class 2 assets.
  A. The LCR is a measure to ensure that the reserve of high quality liquid assets is sufficient to cover short term demand for liquidity in a stress situation.

• Question 733:

  A dealer needs to buy USD against SGD. Of the following rates quoted to him, which is the best rate for him?

  A. 1.4323-26
  B. 1.4320-25
  C. 1.4315-20
  D. 1.4318-23
  C. 1.4315-20

• Question 734:

  You are quoted the following rates: Spot GBP/USD 1.5295-00 Spot USD/CHF 0.9320-23 6M GBP/USD swap 16/12 6M USD/CHF swap 22/18

  Where can you buy GBP against CHF 6-month outright?

  A. 1.4206
  B. 1.4215
  C. 1.4217
  D. 1.4225
  D. 1.4225

• Question 735:

  Which of the following does not represent an operational risk as defined by Basel rules?

  A. theft of information
  B. damage to an organization through loss of its reputation or standing
  C. market manipulation
  D. loss incurred from the use of incorrect documentation
  B. damage to an organization through loss of its reputation or standing

• Question 736:

  Where repos or securities lending transactions are entered into, the Model Code recommends:

  A. Documentation should be in place beforehand.
  B. Management should approve all transactions.
  C. Copies of the underlying documentation should be lodged with regulators.
  D. All of the above.
  A. Documentation should be in place beforehand.

• Question 737:

  Which Greek letter is used to describe the ratio of change in the option price compared with change in the price of the underlying instrument, when all other conditions are fixed?

  A. beta
  B. gamma C. delta
  D. theta
  C

• Question 738:

  When a stop-loss/profit order is taken, the rate specified in the order: A. Must be transacted regardless of where the market moved.

  B. Must be transacted if a broker confirms that the rate specified was reached.
  C. Cannot be taken as a fixed-price guarantee.
  D. None of the above.
  C. Cannot be taken as a fixed-price guarantee.

• Question 739:

  When quoting the exchange rate between the EUR and AUDI which is conventionally the base currency?

  A. EUR
  B. AUD
  C. Depends on whether the price is being quoted in Europe or Australia D. Depends on whether the price is being quoted interbank or to a customer
  A. EUR

• Question 740:

  What is meant by "short dates"?

  A. Maturities of less than one week.
  B. Maturities of less than one month.
  C. Maturities of less than one year.
  D. Maturities in the same calendar month.
  B. Maturities of less than one month.