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ACI 3I0-012 - ACI Dealing Certificate

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Total 740 questions

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

A.

27th December

B.

30th December

C.

31st December

D.

1st January

Which of the following statements best describes the conditions under which a prime broker may accept a trade given up?

A.

the trade is within the specified tenor limits

B.

the trade is within the tenor limits and is of an applicable trade type

C.

the trade is within the tenor limits and credit limits

D.

the trade is within the tenor limits, credit limits and is of an applicable trade type

Which one of the following statements about mark-to-model valuation is correct?

A.

Mark-to-model valuation is used for exchange-traded positions to ensure correct pricing.

B.

Asset managers are not allowed to use mark-to-model valuation.

C.

Mark-to-model valuation is used for complex financial instruments; it is always accurate and in line with potential tradable prices.

D.

Mark-to-model valuation refers to prices determined by financial models, rather than actual market prices.

All prices quoted by brokers should be taken to be:

A.

under reference

B.

firm, but not necessarily in marketable amounts

C.

firm, unless otherwise qualified

D.

merely indicative

The columns below list short-term cash rates on 3rd April and 3rd F1ay 3rd April 3rd May

Describe the shape of the short-term segment of the yield curve on 3’ April using market terminology. In addition, describe the change in the shape of the curve between 3rd April and 3rd May.

A.

Positive, steepening

B.

Positive, flattening

C.

Inverted, steepening

D.

Inverted, flattening

In a plain vanilla interest rate swap, the “fixed-rate payer”:

A.

has established the price sensitivities of a longer-term fixed-rate liability and a floating-rate asset

B.

has established the price sensitivities of a longer-term fixed-rate asset and a floating-rate liability

C.

receives fixed in the swap

D.

pays floating in the swap

EURIBOR is the:

A.

Daily fixing of EUR interbank deposit rates in the European market

B.

Daily fixing of EUR interbank deposit rates in the London market

C.

Another name for EUR LIBOR

D.

The ECB’s official repo rate

Which of the following dealing strategies involves the placing of orders with very short quote lives into a market?

A.

frequency trading

B.

high-incidence trading

C.

flash trading

D.

liquidity aggregators

How many Yen would you pay to buy 1 ounce of gold if you were quoted the following?

XAU/USD 1575.25-75

USD/JPY 96.55-60

A.

JPY 152,090

B.

JPY 152,139

C.

JPY 152,169

D.

JPY 152,217

Which one of the following statements is incorrect under Basel III?

A.

Instruments qualifying for recognition as Tier 1 or Tier 2 capital will be substantially restricted.

B.

Basel III does not include Tier 3 capital

C.

There is a distinction between upper Tier 2 and lower Tier 2 capital

D.

New non-common equity Tier 1 and Tier 2 instruments are more loss-absorbing than previously

An interest rate guarantee (IRG) is:

A.

AnFRA

B.

An option on an FRA

C.

A collar

D.

AnIRS

You have quoted your customer the following CAD deposit rates:

1M 1.00-05%

2M 1.06-11%

3M 1.13-18%

The customer says, “I give you CAD 20,000,000.00 in the two’s”. What have you done?

A.

Borrowed CAD 20,000,000.00 at 1.06%

B.

Lent CAD 20,000,000.00 at 1.11%

C.

Borrowed CAD 20,000,000.00 at 1.11%

D.

Lent CAD 20,000,000.00 at 1.06%

At the end of the day, you are short CHF 3,500,000.00 against SEK at 6.9275. You are asked to revalue your position at 6.9190. What is the resulting profit or loss?

A.

Profit of CHF 29,750.00

B.

Profit of SEK 29,750.00

C.

Loss of SEK 29,750.00

D.

Loss of CHF 29,750.00

When can a broker consider a deal to be done?

A.

if he is confident that the dealer will not back out of the deal

B.

if both parties to the deal have established credit lines for each other

C.

if one party to the deal acknowledges interest

D.

if he receives acknowledgement from both the dealers involved

The Model Code stipulates that you have a right to qualify your quotes in terms of amounts:

A.

if you do so when you make the price

B.

provided the amounts are marketable

C.

once you have discovered the name of the counterparty for credit reasons

D.

at anytime