Effective Study Techniques for the ACI 3I0-013 Exam

TARGET2

Euro Link System (ELS)

Euroclear

Clearstream

Settlement, counterparty and equity risk

Only counterparty risk

Only currency and interest rate risks

Settlement, counterparty and market risk

That a daily nostro reconciliation report is sent out to the correspondent bank

That they are performed before the next business day

That they are performed in a timely and efficient way

That open items are booked on an internal account

To keep the multilateral limits updated

To invest funds at the highest available interest rate

To keep the balance or position of the accounts or nostros in each currency representing the accounts held by the bank’s agents

To keep the management informed about interest rate developments

Monday, 13 March

Tuesday, 14 March

Wednesday, 15 March

Thursday, 16 March

Liquid assets pledged by one or both counterparties to the other to reduce credit risk

Deposits placed by a commercial bank with a central bank to fulfill reserve asset ratios

Any deposit placed by an institution with another institution of a lower credit rating

Any cross border payment of currency

Auction markets conducted by the U.S. Treasury for U.S. Treasury bills

The repo market

The foreign exchange market

The over-the-counter market for U.S. Government Bonds

A convention whereby a transaction is dated the following business day, unless that day extends into the next month, in which case it is dated the preceding business day

A convention whereby a transaction is dated the following business day

A convention whereby a transaction is dated the preceding business day

A convention whereby a transaction is dated the next business day that corresponds to the same numerical day of the month as the preceding payment

The original face value of the CD

More than the originally paid value

Less than the originally paid value

There is too little information to decide

Account reconciliations are necessary for the early detection of missing, failed or erroneous entries.

Custody accounts should be reconciled after each account movement or at least once a month.

Reconciliations related to transactions and balances should only be conducted for cash accounts.

Cash accounts should be reconciled as soon as an updated account statement is available.