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Effective Study Techniques for the ACI 3I0-013 Exam

Questions 41

What happens if an instruction remains unmatched and/or unsettled through CLS Bank?

Options:

A.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trades outside of CLS Bank on a net basis.

B.

If there is only one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally decide to settle the trade outside of CLS Bank on a net basis.

C.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trade outside CLS Bank on a gross basis.

D.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally instruct the CLS Bank to settle the trades.

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Questions 42

When is the final cut-off time for settlement payment orders using the Fedwire Funds Service?

Options:

A.

17:30 (5:30 p.m.) Eastern Time (ET)

B.

18:00 (6:00 p.m.) Eastern Time (ET)

C.

18:30 (6:30 p.m.) Eastern Time (ET)

D.

19:00 (7:00 p.m.) Eastern Time (ET)

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Questions 43

Commercial Paper for USD 5,000,000.00 was issued at 0.75%, which you now buy to yield 0.50%. What would you expect to pay?

Options:

A.

The face value of 5,000,000.00

B.

More than 5,000,000.00

C.

Less than 5,000,000.00

D.

Cannot decide based on the information supplied

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Questions 44

The price of a zero coupon, maturing in 2 years, is

Options:

A.

Always close to 100%

B.

Above 100%

C.

Below 100%

D.

Always precisely 100%

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Questions 45

Which settlement system offers the lowest risks?

Options:

A.

EBA

B.

CLS

C.

TARGET2

D.

CHAPS

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Questions 46

In error, your dealer enters a trade whereby he buys GBP 8,000,000.00 against USD at 1.5500, but manages to cover it at the same rate. When the initial mistaken trade is cancelled, however, the rate has since changed to 1.5200. What is the effect on P&L?

Options:

A.

Profit GBP 240,000.00

B.

Loss GBP 240,000.00

C.

Profit USD 240,000.00

D.

Loss USD 240,000.00

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Questions 47

AFRA is:

Options:

A.

An instrument for managing interest rate risk

B.

An instrument for managing credit rate risk

C.

An instrument that never impacts P/L

D.

The forward leg of an FX swap

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Questions 48

A dealer makes the following deals in EUR/USD:

Sells EUR 1,500,000.00 at 1.3560

Buys EUR 3,250,000.00 at 1.3542

Sells USD 2,709,600.00 at 1.3548

Buys USD 1,762,410.00 at 1.3557

What is the dealer's position as a result of these trades?

Options:

A.

Short EUR 2,450,000.00 at 1.3528

B.

Long EUR 2,450,000.00 at 1.3528

C.

Long EUR 2,000,000.00 at 1.3532

D.

Long EUR 2,450,000.00 at 1.3525

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Questions 49

Your forward CHF dealer asks you, the junior settlements clerk, to amend revaluation rates for the forward CHF book before they are submitted to the risk management department for input. What should you do?

Options:

A.

Amend the rates as requested

B.

Refuse to amend the rates, but say nothing

C.

Refuse and report the incident to your superior

D.

Refuse and report the incident to your colleague

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Questions 50

Which of the following characterize "delivery against payment" also known as "delivery versus payment"?

Options:

A.

Securities are first delivered and then the payment is processed

B.

The payment order is first blocked and then the payout of securities is processed

C.

Securities are exchanged into a defined currency

D.

Delivery is insured if and only if payment occurs

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