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ACI 3I0-012 - ACI Dealing Certificate

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Page: 8 / 15
Total 740 questions

If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, the correct value date will be:

A.

the value date of the financial centre that is open

B.

the next business day of the financial centre which is closed

C.

the next business day when both New York and Tokyo are open

D.

the previous business day when both New York and Tokyo are open

Supervisors would generally consider interest rate risk exposure in the banking book excessive beginning at what level of losses given a +1- 200 bps market rate movement?

A.

> 2% of 6 months forward earnings

B.

> 20% of regulatory capital

C.

<10% of regulatory capital

D.

< 5% of 12 months forward earnings

A CD with a face value of EUR 10,000,000.00 and a coupon of 3% was issued at par for 182 days and is now trading at 3.10% with 120 days remaining to maturity. What has been the capital gain or loss since issue?

A.

-EUR 52,161.00

B.

-t-EUR 47,839.00

C.

-EUR 3,827.67

D.

Nil

Which of the following statements is true concerning dealing and rollovers at non-current rates?

A.

When setting the rates for an FX swap to extend the maturity, the spot rate should be fixed immediately within the current spread

B.

Where the use of non-current rates may be necessary, they should only be entered into with the prior explicit permission of the quoting party’s senior management

C.

Dealing and rollovers at non-current rates are relatively common market practice and therefore should not be treated differently from any other transaction

D.

Dealing and rollovers at non-current rates are forbidden as they can help perpetrate fraud and tax evasion

Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?

A.

minimum tier 1 capital of 4.5% and minimum total capital plus a conservation buffer of 10.5%

B.

minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 8%

C.

minimum tier 1 capital of 4% and minimum total capital including conservation buffer of 10.5%

D.

minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%

You have quoted spot USD/CHF at 0.9423-26. Your customer says “I take 5”. What does he mean?

A.

He buys CHF 5,000,000.00 at 0.9423

B.

He buys CHF 5,000,000.00 at 0.9426

C.

He buys USD 5,000,000.00 at 0.9423

D.

He buys USD 5,000,000.00 at 0.9426

Which type of repo is the most risky for the buyer?

A.

Delivery repo

B.

HIC repo

C.

TO-party repo

D.

There is no real difference

What is the Overnight Index for EUR?

A.

EURIBOR

B.

EONIA

C.

EUREPO

D.

EURONIA

Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:

A.

Implicit nominal rate

B.

Implied forward rate

C.

Funding rate

D.

Effective future rate

Responsibility for the activities of all personnel engaged in dealing (both dealers and support staff) for both principals and brokers lies with:

A.

the market supervisor

B.

the national ACI association

C.

the management of such organizations

D.

the central bank

You request use of funds from your agent bank for 1 day on an amount of EUR 100,000,000.00, EONIA was 0.812% and the ECB deposit facility rate is 0.50%. What use of funds settlement amount should you expect?

A.

EUR 1,388,89

B.

EUR 1,561.11

C.

EUR 2,255.56

D.

EUR 2,951.39

The use of standard settlement instructions (SSI’s) is strongly encouraged because:

A.

it reduces operational risk

B.

it splits differences arising from failed settlement between the two counterparties

C.

it removes the need for sending out SWIFT confirmations

D.

the use of SSI’s secures the trading on more secure platforms

Which of the following does the Model Code mention with regards to recording telephone conversations?

A.

There is no need to inform new counterparties and clients that conversations will be recorded.

B.

It is normal practice that tapes and other records should be kept for at least twelve months.

C.

The periods for which tapes and other records should be retained should reflect the way in which the terms and conditions of transactions have been agreed, and the duration of transactions.

D.

Dealers and other staff are reminded that telephones and electronic text messaging systems in the firm are intended for business and private use and that conversations and exchanges of text messages should be conducted in a casual manner.

An ‘at-the-money’ option has:

A.

Intrinsic value but no time value

B.

Time value but no intrinsic value

C.

Both time value and intrinsic value

D.

Neither time value nor intrinsic value

What are the primary reasons for taking an initial margin in a classic repo?

A.

Counterparty risk and operational risk

B.

Counterparty risk and legal risk

C.

Collateral illiquidity and counterparty risk

D.

Collateral illiquidity and legal risk