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ACI 3I0-012 - ACI Dealing Certificate

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Total 740 questions

What is the value date of a 1-month outright forward FX transaction dealt today, if today’s spot date is Monday, 30th January? Assume there are no bank holidays and that the year is not a leap year.

A.

2nd March

B.

1st March

C.

2gth February

D.

28th February

If GBP/USD is 1.5350-53 and USD/JPY is 97.50-53, what is GBP/JPY?

A.

149.66-74

B.

149.69-71

C.

63.52-53

D.

63.51-54

What is the purpose of the Liquidity Coverage Ratio?

A.

to mitigate market replacement risk across markets

B.

to eliminate funding mismatches by establishing a minimum acceptable amount of stable funding

C.

to ensure that banks have enough high-quality liquid assets to survive a 30-day period of acute market stress

D.

to minimize duration risk on a bank’s assets over a one-year horizon

A prime broker may not reject a trade given up if:

A.

the trade is not within the specified tenor limits

B.

the trade is not within the specified credit limits

C.

the trade details provided by the executing dealer and the client match

D.

the trade is a permitted transaction type as specified in the give-up agreement with the executing dealer

Under Basel III the Credit Value Adjustment will apply to:

A.

bilaterally cleared ABS trades only

B.

exchange traded derivatives only

C.

derivatives cleared via a CCP

D.

bilaterally settled OTC derivatives trades

An FX forward outright has been dealt for a value date which is subsequently declared to be a bank holiday. According to the Model Code, the exchange rate for the deal:

A.

should be adjusted to take account of the change in value date

B.

cannot be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep the original rate

C.

must be adjusted if one of the counterparties wishes to adjust the rate but the other wishes to keep the original rate

D.

should be adjusted if the adjustment is for two days or longer but not if it is for only one day

In FX trading a “third party beneficiary” is best described as:

A.

the issuer of a payment for the relevant trade distinct from the counterparty

B.

the issuer of a payment for the relevant trade identical to the counterparty

C.

the recipient of a payment for the relevant trade distinct from the counterparty

D.

the recipient of a payment for the relevant trade identical to the counterparty

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

What would happen to a bank’s net interest income if it ran a zero gap in an environment of decreasing interest rates?

A.

Net interest income would increase slightly.

B.

Net interest income would increase considerably.

C.

Net interest income would decrease.

D.

Net interest income would hardly change at all.

What is the ISO code for platinum?

A.

XAU

B.

XAG

C.

XPT

D.

XPD

Four banks provide you with quotes in CHF/SEK. Which is the best price for you to buy SEK?

A.

6.5825

B.

6.5820

C.

6.5815

D.

6.5830

Mark-to-market’ in a repo means:

A.

Revaluing collateral versus cash

B.

Revaluing collateral

C.

Calculating net present value

D.

Calculating the net replacement cost

What type of risk would describe the failure of a back office to make adequate margin calls on repo positions?

A.

Credit risk

B.

Market risk

C.

Operational risk

D.

Settlement risk

After having quoted a rate of 1.5005-10, the quoting bank says, “Your risk”. This means:

A.

The quoted rate is subject to change at the risk of the price-taker

B.

The quoting bank is reminding you of the market risk of your potential trade

C.

This is a requirement of any market maker

D.

The market maker needs to check your credit limit

In foreign exchange markets, the first currency in a currency pair is:

A.

The quoted currency

B.

The base currency

C.

The counter currency

D.

The terms currency