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ACI 3I0-012 - ACI Dealing Certificate

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Total 740 questions

Which of the following may pay a return as a mix of income and capital/gain loss?

A.

CD

B.

Interbank deposit

C.

Classic repo

D.

Treasury bill

3-month USD/CHF is quoted at 12/10. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?

A.

unchanged

B.

15/13

C.

10/8

D.

6/4

Net funding requirements in liquidity management are determined by means of:

A.

adding up expected vault cash outflows, ATMs and other cash points operated by the institution across all branches

B.

establishing a forward cash flow plan that takes account of all contractual and behavioral cash flows related to assets and liabilities

C.

the net cash flow from investment activities in the IFRS consolidated Statement of Cash Flows for prior periods

D.

subtracting short-term liabilities from short-term assets

You quote spot EUR/USD at 1.3023-26 in 5 to another bank. He says, “Take 5, could do 8”.

How much are you obliged to do?

A.

Nothing, as he changed the terms of the deal

B.

EUR 5,000,000.00

C.

More than EUR 5,000,000.00, but a maximum of EUR 8,000,000.00

D.

EUR 8,000,000.00

The Model Code’s correct recommendation regarding electronic trading states:

A.

Time stamps on e-trading platforms need to be internally and globally synchronised to ensure appropriate tracking of trades

B.

All records should be archived and appropriate audit trails must be maintained as required by the local Central Bank

C.

Regular tests for loss of access to external liquidity platforms but not loss of service to clients should be undertaken

D.

Testing of the system’s capability to cope with extreme volumes should be carried out annually

Which of the following risks are considered market risks?

A.

interest rate, currency, equity and commodity risk

B.

interest rate, currency, equity and default risk

C.

interest rate, equity, liquidity and default risk

D.

legal, reputation and regulatory risk

What is the meaning of CCP within the Basel framework?

A.

Collateralized Clearing Process

B.

Central Clearing Counterparty

C.

Collateralized Counterparty Protection

D.

Collateralized Credit Protection

What does the Model Code say concerning repos and stock-lending?

A.

Legal documentation must be put in place as soon as possible after transaction.

B.

All market participants should use the Modified Previous Business Day Convention.

C.

The exact maturity (end) dates for transactions must be agreed as soon as possible after a transaction.

D.

All market participants should use the Modified Following Business Day Convention.

Cable is quoted at 1.5575-80 and you say “5 yours!” to the broker. What have you done?

A.

Sold USD 5,000,000.00 at 1.5575

B.

Sold GBP 5,000,000.00 at 1.5575

C.

Bought GBP 5,000,000.00 at 1.5580

D.

Bought USD 5,000,000.00 at 1.5580

What is the Purchase Price of a repo?

A.

The market value of bond collateral at the start of the repo at the clean price of the bond

B.

The market value of bond collateral at the start of the repo at the dirty price of the bond

C.

The amount of cash actually paid for collateral at the start of the repo

D.

The amount of cash actually paid for collateral at the start of the repo plus repo interest

If several banks hit a broker simultaneously for an amount greater than the amount for which the price was shown:

A.

no transaction is done

B.

the broker has to honor each and every amount hit

C.

the broker has to split the amount among the banks on a pro rata basis

D.

the broker may freely choose the bank(s) he will deal with

If the issuer of the collateral used in a repo defaults during the term of the transaction, who suffers the loss?

A.

Buyer

B.

Seller

C.

Issuer

D.

It depends on the agreement between the buyer and seller

Your GBP/CHF rate is 1.3710-15. How many GBP would your customer have to give you to buy CHF 10,000,000.00?

A.

7,291,286.91

B.

7,293,946.02

C.

13,710,000.00

D.

13,715,000.00

What should a broker do if his quoted price is hit simultaneously by several dealers for a total amount greater than that for which the price concerned was valid?

A.

allot the amount for which the price is valid pro rata amongst some principals in accordance with the amount proposed by each and inform the other dealers that “nothing was done”

B.

decide which principals he will allot the amount for which the price is valid and inform the other dealers that “nothing was done”

C.

evenly allocate the amount for which the price is valid amongst all the principals and inform all the relevant dealers

D.

apportion the amount for which the price is valid pro rata amongst all the principals concerned in accordance with the amount proposed by each and inform all the relevant dealers

USD/CHF is quoted to you at 0.9290-93 and GBP/USD at 1.5320-30. At what rate could you buy GBP and sell CHF?

A.

1.4242

B.

1.4232

C.

1.4246

D.

1.4237