Free Practice Questions for ACI 3I0-012 Exam

the practice of a dealer attempting to replace one customer by a new one in a previously dealt transaction

the practice of a broker having to show a new name to the dealer, although he was full on the first name presented to him

the practice of a broker attempting to substitute a third name between the two original counterparties to clear the transaction

the practice of a broker attempting to show a substitution name to get out of a situation in which he was stuffed by a dealer

Sell

Sell and subsequently buy back

Sell and borrow

Sell, borrow and buy back simultaneously

Treasury bill

CD

ECP

Classic repo

Dealers may seek a compensation payment in favor of the bank or an adjustment to brokerage bills from the broker for switching names.

If requested by a broker to clear a transaction through name switching, a dealer must ensure that such activities have the prior approval of senior management.

The practice of name switching/substitution is neither acceptable nor desirable.

Name switching/substitution transactions should be executed as promptly as possible not considering credit limits and policy guidelines.

are invalid

must be approved by senior management before confirmation

cannot be entered into without the approval of the local regulator

are not considered to have been done in normal conditions or normal market hours

You have a right to qualify your quotes in terms of amounts, if you do so when you make the price.

You have a right to qualify your quotes in terms of amounts, provided the amounts are marketable.

You have a right to qualify your quotes in terms of amounts, once you have discovered the name of the counterparty for credit reasons.

You have a right to qualify your quotes in terms of amounts.

Less than 50% probability

50% probability

More than 50% probability

Zero probability

Higher interest rates

Lower interest rates

Steepening yield curve

Parallel shift downwards in the yield curve

Commission paid by both parties at rates agreed beforehand

A fee paid by the seller

Bid/offer spread

A share of the bid/offer spread

the monetary authority in the country where the broker is located

the banking association in the country where the bank is located

the Committee for Professionalism of the ACI

the local foreign exchange market committee

an unavailability of a credit limit for the counterparty

a qualification stating that a transaction needs to be reconfirmed

the unacceptability of the counterparty’s name

a qualification stating that the rate quoted may no longer be valid and requires confirmation before any trades can be agreed

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 curie

There is not enough information to decide

in 1 out of 10 days, the portfolio value will decline by USD 5,000.00 or less.

in 1 out of 90 days, the portfolio value will decline by USD 5,000.00 or less.

in 1 out of 10 days, the portfolio value will decline by USD 5,000.00 or more.

in 1 out of 90 days, the portfolio value will decline by USD 5,000.00 or more.

GBP 10,000

EUR 10,000

GBP 6,990

EUR 6,990

On an special number known only to the chief dealer.

On a number located in the office of the internal auditor.

Secured so that reported transactions cannot be erased without senior management approval.

Secured by recordings that are stored for a suitable period.