ACI 3I0-012 Exam Success: ACI Dealing Certificate Complete Study and Preparation Tips

9.5836

6.2834

0.1591

0.1043

I buy the base currency at the bid rate.

I buy the base currency at the offer rate.

I buy the counter-currency at the offer rate.

I sell you the base currency at the bid rate,

the name of Bank A and Bank B

the names of Bank B and Bank C

the amount that was bid but not the name of Bank A

the amount taken by Bank C as well as the amount that was bid

1.3073-70

0.7651-49

0.7646-49

0.7649-51

Assets are classified with an available stable funding factor (ASF).

Liabilities are classified with a required stable funding factor (RSF).

The ratio of available funding to required funding has to be higher than 50%n

Equity has an available stable funding factor of 100%.

Loss Given Default

Liquidity Given Distress

Limit Given Default

Loss Given Distress

15

20

35

40

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

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

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

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

Revaluing collateral versus cash

Revaluing collateral

Calculating net present value

Calculating the net replacement cost

Seller

Buyer

Issuer

It depends on the agreement between the buyer and seller

EUR rates are higher than AUD rates in the 6-month

AUD rates are higher than EUR rates in the 6-month

There is a positive EUR yield curve

There is not enough information to decide

Raise USD interest rates

Lower USD interest rates

Lower reserve requirements

It could not squeeze you

the expected loss on the portfolio in the worst 95% of cases

the expected loss in those cases where the loss exceeds the VaR at the 95% level

the maximum loss in those cases where the loss exceeds the VaR at the 95% level

the expected loss in those cases where the loss exceeds the VaR at the 5% level

Credit institution

Investment bank

Discount house

Corporate

Interest rates in different currencies will tend to move into line with each other over time

Interest rates in different currencies differ due to differences in expectations about inflation

Selling a low interest rate currency to invest a high interest rate currency will only be profitable if one hedges the currency risk

Selling a low interest rate currency to invest in a high interest rate currency should not be profitable if one hedges the currency risk