Effective Study Techniques for the ACI 3I0-013 Exam

Are commonly used to register off-balance sheet movements

Are used to book internal tax related items

Generally mirror the nostro statements

Are reserved for audit and compliance purposes only

Long 5,000,000.00 EUR/USD at 1.3552

Long 5,000,000.00 EUR/USD at 1.3545

Short 5,000,000.00 EUR/USD at 1.3585

Short 5,000,000.00 EUR/USD at 1.3545

A future rate agreement involving two different currencies

An interest rate agreement where buyer and seller will exchange an interest rate differential at a given date in the future

An interest rate to be applied to a loan or deposit that begins and matures in the future

An agreement to exchange cash flows starting on a specific date in the future

Always paid in case of an early redemption

Paid, if stipulated in the prospectus, at an early redemption

Always paid at final maturity

Only paid if a bond is redeemed after its initially scheduled maturity

Frequently purchased by issuers of floating rate debt

Frequently sold by issuers of floating rate debt

Frequently sold by issuers having an FX risk

Frequently purchased by issuers having an FX risk

On the trade date

On the maturity date of the FRA

Daily in accruals

On the start date of the FRA

Largely the interest rate differential between two currencies

The price of an option

The expectation of an appreciation of a currency

The volatility of a currency

A fixed time deposit

An on call deposit

A fiduciary deposit

A certificate of deposit

Only market risk

Only credit risk

Market risk and credit risk

Market risk, credit risk and delivery risk

Market and loss

Market and money

Market and credit

Market and unavailability