ACI 3I0-008 Exam Practice Test Instant Access

Question 1

Where dealing through an intermediary with an unidentified principal, the Model Code recommends:

AIt is good practice for compliance, legal or credit functions to identity counterparties before the execution of a deal.

BManagement should have in place a clearwritten policy and procedures governing such transactions.

CManagement needs to be aware of the risks involved, particularly with respect to credit exposure and money laundering.

DAll of the above.

Answer : D

Question 2

Which of the following is true?

AIt is the responsibility of the broking firm to conduct due diligence before transacting a deal.

BAll principals have the responsibility for assessing the creditworthiness of their counterparties or potential counterparties whether dealing direct or through a broking firm.

CThe principal is obliged to take into account any information provided by a broker as they are bound by a professional relationship.

DAll of the above.

Answer : B

Question 3

A forward-forward loan creates an exposure to the risk of:

AHigher interest rates

BLower interest rates

CSteepening yield curve

DParallel shift downwards in the yield curve

Answer : A

Question 4

A futures clearing house is:

AThe buyer to each seller and the seller to each buyer

BA clearing agent only

CThe self-regulatorj organisation for the futures exchange

DThe owner of the futures exchange

Answer : A

Question 5

A CD with a face value of USD 250 million was issued at par with a coupon of 5% for 91 days. You buy it in the secondary market when it has 30 days remaining to maturity and is trading at 5.25%. How much do you pay?

AUSD 252,056,972.97

BUSD 252,028,916.32

CUSD 250,000,000.00

DUSD 248,911,014.31

Answer : A

Question 6

A CD with a face value of USD 50 million and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss since issue?

A+USD 373,599.00

BUSD 186,099.00

C-USD 1,400.99

DNil

Answer : C

Question 7

Purchasing a USD/JPY call option is equivalent to:

ASelling an JPY/USD put option

BSelling a JPY/USD call option

CPurchasing an JPY/USD put option

DNone of the above

Answer : C

ACI Dealing Certificate 3I0-008 Exam Practice Test