Free Practice Questions for ACI 3I0-012 Exam

Nothing

A margin call is triggered on the seller

A manufactured payment is made to the seller

The equivalent value plus reinvestment income is deducted from the repurchase price

It is good practice to collect and disclose incidents and near-misses for the future benefit of the professional community.

It is good practice to collect and analyze incidents and near-misses so as to set up preventive action plans for the future.

A report describing operational risks should be made at the request of the front office.

A report describing operational risks should be made at least once a year and provided to the front office.

Financial institutions have to establish procedures for handling limit breaches that are in accordance with their decision-making hierarchy.

If a partial limit violation does not exceed the overall limit, no reaction is required.

The definition of escalation levels is not required in order to react appropriately to different sorts and intensities of limit breaches.

It is adequate and proper to define reactions only to standard cases of limit violations.

Receives compensation if a reference interest rate falls below an agreed level

Pays compensation if a reference interest rate falls below an agreed level

Receives compensation if a reference interest rate rises above an agreed level

Pays compensation if a reference interest rate rises above an agreed level

The transaction should be concluded and the broker should inform both counterparties accordingly.

The dealer who hits the broker’s price may decide whether the deal is done or not; the broker should inform both counterparties accordingly.

The deal should not be concluded and the broker should inform both counterparties accordingly.

The broker should immediately inform both counterparties that the deal will have to berenegotiated.

mis-stroke

slip-bid

mis-hit

broken trade

1.534284

1.534316

1.534287

1.534313

Sell a 1x3 FRA at 0.42%

Buy a 1x3 FRA at 0.45%

Buy a 1x4 FRA at 0.58%

Sell a 1x4 FRA at 0.54%

GBP 10,000.00

EUR 10,000.00

GBP 8,990.00

EUR 8,990.00

0.470%

0.196%

0.500%

0.169%

is a contract by which the maturity of a regular FX swap can be extended at an historic (noncurrent) rate

is a swap transaction where the near leg is traded either value today or value tomorrow and the far leg is traded spot

is a swap that does not start spot and where both the near and the far leg are traded forward

is a transaction by which a maturing outright forward FX is prolonged at an historic (non-current) rate

the prime-broker and the executing dealer only

the prime-broker and the executing dealer, and between the executing dealer and the client

the prime-broker and the executing dealer, and between the prime-broker and the client

the prime-broker and the client, and between the executing dealer and the client

Selling distressed assets and investing in bank liabilities trading at distressed levels.

Making sure that fixed assets are depreciated according to the applicable tax code.

Planning the maturity structure and net funding requirements arising from banking book and trading book transactions.

Planning the liability structure and net funding requirements arising from trading book assets carried at amortized cost.

1.299971

1.309966

1.309971

1.310029

ensure that compliance is carried out efficiently

set limits on borrowing in the short-term markets to fund long-term lending

develop, evaluate, monitor and approve strategies related to risk due to imbalances in the asset and liability structure of the balance sheet

report to the board of directors