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ACI 3I0-012 - ACI Dealing Certificate

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Total 740 questions

You are quoted the following market rates:

spot EUR/USD. 1.2250

3M (91-day) EUR 2.55%

3M (91-day) USD. 2.00%

What is 3-month EUR/USD?

A.

1.2232

B.

1.2233

C.

1.2234

D.

1.2267

One or your brokers asks you to buy and sell EUP/USD at the same price net of brokerage in order to allow him to clear a transaction.

A.

You must have prior senior management approval.

B.

You must have the authority to switch names.

C.

You must execute such transactions as promptly as possible within policy guidelines

D.

All of the above.

You buy a 181-day 2.75% CD with a face value of USD 1,500,000 at par when it is issued. You sell it in the secondary market after 150 days at 2.60%. What is your holding period yield?

A.

2.60%

B.

2.75%

C.

2.775%

D.

2.813%

Which of the following is not true?

A.

The Model Code is published by ACI’s Committee for Professionalism.

B.

The Model Code sets out the practicalities of dealing in those financial instruments listed in the Model Code.

C.

The Model Code is an attempt to deal with the legal issues relating to every conceivable financial instrument.

D.

The Model Code sets out the manner and spirit in which foreign exchange and money market business should be conducted in order that participants maintain high standards of professionalism, integrity and ethical conduct.

The Model Code recommends that when banks accept a stop-loss order

A.

Management must ensure ongoing lines of communication are in place between the parties.

B.

Management must report to the central bank.

C.

Management allows only experienced dealers to take such orders.

D.

Bank staff must secure the approval of the counterpartqs management to accept such orders.

Bank B’s price is shown by a broker to Bank A and is dealt by Bank A. If Bank A wants to increase the amount of the transaction, what is good market practice according to the Model Code:

A.

Bank A can call Bank B directly.

B.

Bank A should wait 10 minutes before calling Bank B.

C.

Bank A cannot increase the amount.

D.

Bank A should go back to the broker.

A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is 3.25%. If you held GBP 10,500,000.00 of this bond, what would be the cost of borrowing against it in the repo market?

A.

GBP 7,551.37

B.

GBP 6,544.52

C.

GBP 5,537.67

D.

GBP 1,006.85

What is the maximum maturity of an unsecured USCP?

A.

One year

B.

270 days

C.

183 days

D.

5 years

You bought a CAD 8,000,000.00 6x9 FRA at 1.95%. The settlement rate is 3-month (90-day) BBA LIBOR, which is fixed at 0.9500%.

What is the settlement amount at maturity?

A.

You pay CAD 20,000.00

B.

You receive CAD 20,000.00

C.

You pay CAD 19,952.61

D.

You receive CAD 19,952.61

A corporate wishing to hedge the interest rate risk on its floating-rate borrowing would:

A.

Sell interest rate caps

B.

Sell futures

C.

Sell FRAs

D.

Buy futures

Confirmations of non-prime brokerage deals using CLS should be exchanged:

A.

within 2 hours after deal agreed with counterparty

B.

before the value date of the trade

C.

by the end of the trade date

D.

within 24 hours

What is EONIA?

A.

Volume-weighted average overnight EUR deposit rate

B.

Volume-weighted average overnight EUR LIBOR

C.

Arithmetic average overnight EUR deposit rate

D.

ECB overnight lending rate

How long does the Model Code recommend that tapes and other records of dealers/brokers be kept?

A.

at least two months

B.

one year

C.

up to one month

D.

at least three months

From the following GBP deposit rates:

1M (30-day) GBP deposits 0.45%

2M (60-day) GBP deposits 0.50%

3M (91-day) GBP deposits 0.55%

4M (123-day) GBP deposits 0.65%

5M (153-day) GBP deposits 0.70%

6M (184-day) GBP deposits 0.75%

Calculate the 3x4 forward-forward rate.

A.

0.60%

B.

0.949%

C.

1.074%

D.

0.933%

The market is quoting:

6-month (182-day) CAD 1.25%

12-month (366-day) CAD 1.55%

What is the 6x12 rate in CAD?

A.

0.300%

B.

0.946%

C.

1.935%

D.

1.835%