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Free ACI 3I0-012 Practice Exam with Questions & Answers | Set: 13

Questions 181

Which position below is NOT a component of common equity Tier 1 capital?

Options:
A.

innovative hybrid capital instruments with incentives to redeem

B.

common shares issued by bank

C.

retained earnings

D.

stock surplus (share premium)

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Questions 182

Click on the Exhibit Button to view the Formula Sheet, If GBP/USD is 1.5350-53 and USD/JPY is 106.50-53, what is GBP/JPY?

Options:
A.

163.48-56

B.

163.51-52

C.

69.36-39

D.

69.36-39

Questions 183

When performing a gap analysis, into which of the following time buckets should a 5-year floating-rate note with a 6-month LIBOR coupon be slotted?

Options:
A.

the 6-month bucket

B.

the 2.5-year bucket

C.

the 5-year bucket

D.

It should be weighted and apportioned in each of the time buckets in accord with the periodic coupon payments.

Questions 184

If the daily 90% confidence level VaR of a portfolio is correctly estimated to be USD 5,000.00, one would expect that:

Options:
A.

in 1 out of 10 days, the portfolio value will decline by USD 5,000.00 or less.

B.

in 1 out of 90 days, the portfolio value will decline by USD 5,000.00 or less.

C.

in 1 out of 10 days, the portfolio value will decline by USD 5,000.00 or more.

D.

in 1 out of 90 days, the portfolio value will decline by USD 5,000.00 or more.

Questions 185

With reference to dealing periods, what does the term “short dates” refer to?

Options:
A.

overnight, tom-next and spot-next

B.

maturities up to one week

C.

maturity dates of less than one month

D.

maturity dates of less than 10 days

Questions 186

A Eurozone-based bank that is liability-sensitive to market interest rate changes might reduce interest rate risk by:

Options:
A.

entering into a pay fixed I receive variable standard interest rate swap

B.

entering into a receive fixed I pay variable amortizing interest rate swap

C.

entering into a EUR/USD FX swap

D.

entering into a receive fixed I pay variable standard interest rate swap

Questions 187

Name switching is:

Options:
A.

the practice of a dealer attempting to replace one customer by a new one in a previously dealt transaction

B.

the practice of a broker having to show a new name to the dealer, although he was full on the first name presented to him

C.

the practice of a broker attempting to substitute a third name between the two original counterparties to clear the transaction

D.

the practice of a broker attempting to show a substitution name to get out of a situation in which he was stuffed by a dealer

Questions 188

Written confirmation is a function that can be done by:

Options:
A.

Any dealer as long as he/she is not a party to the trade.

B.

Staff in the back-office.

C.

Staff in the dealing room who are not dealing.

D.

Any staff outside the dealing room.

Questions 189

What is the primary function of GC repo, particularly very short -term transactions?

Options:
A.

Financing long positions

B.

Covering short positions

C.

Interest rate positioning

D.

Dividend tax arbitrage

Questions 190

If I say that I have “bought and sold” EUR/USD in an FX swap, what have I done?

Options:
A.

Bought EUR and sold USD spot, and sold FUR and bought USD forward

B.

Bought EUR/USD spot and sold EUR/USD forward

C.

Taken a EUR loan in exchange for making a USD loan with the same counterparly

D.

All of the above

Questions 191

What is the maximum maturity of a London CD?

Options:
A.

One year

B.

270 days

C.

183 days

D.

5years

Questions 192

Which of following is not true?

Options:
A.

Inter-bank market participants have a duty to make absolutely clear whether the prices they are quoting are firm or merely indicative.

B.

It is the duty of the dealer to periodically confirm with the broker the validity of his price.

C.

It is the responsibility of the dealer to ensure that prices given to a broker are taken off if they have not been hit or were subject to a time limit.

D.

No deal is done if one counterparty is unable to conclude a deal due to credit line problems and a name switch is not found within a reasonable period of time.

Questions 193

A person who appears to be a technician asks for your help in accessing treasury systems as he has forgotten his list of access codes. The Model Code recommends:

Options:
A.

You should provide all reasonable assistance.

B.

You should report the request immediately to senior management.

C.

Do not get involved; you may be at risk.

D.

There is no recommendation in the Model Code.

Questions 194

In the unforeseen event that a particular maturity date is declared a public holiday, what is normal market practice for spot FX?:

Options:
A.

Extend the contract to the next business day

B.

Shorten the contract to the previous business day

C.

A new maturity date has to be agreed by the two parties involved

D.

ACI’s Committee for Professionalism decides on a case by case basis

Questions 195

What are IMM dates?

Options:
A.

The 10th of March, June, September and December.

B.

The third Wednesdays of January, April, July and October.

C.

The Mondays before the third Wednesdays of March, June, September and December.

D.

The third Wednesdays of March, June, September and December.