ACI 3I0-008 Exam Practice Test Instant Access

Question 1

In spite of having agreed to a deal, dealers are not bound to the deal if it is subject to documentation. The Model Code:

ADoes not regard this as a good practice.

BUrge dealers to be bear this in mind, as this is common practice for capital market deals.

CDoes not comment on this matter.

DRecommends that national ACI Associations deal with this according to their local customs.

Answer : A

Question 2

A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is 3.25%. If you held GBP 10,500,000 of this bond. what would be the cost of borrowing against it in the repo market?

AGBP 7,551.37

BGBP 6,544.52

CGBP 5,537.67

DGBP 1,006.85

Answer : C

Question 3

A 7-day piece of USCP is quoted at a rate of discount of 1.75%. What is its true yield?

A1.73%

B1.75%

C1.77%

D1.80%

Answer : B

Question 4

Click on the Exhibit Button to viewthe Formula Sheet. BankA pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO /USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:

AThe name of Banks A and B.

BThe name of Bank B only.

CThe amount that was bid but not the name of Bank A.

DNone of the above

Answer : B

Question 5

The mid-rate for USD/CHF is 1.3950 and the mid-rate for AUD/USD is 0.7060. What is the midrate for CHF/AUD?

A0.9849

B1.0154

C1.9759

D0.5061

Answer : A

Question 6

In the international market, a FRA in USD is usually settled with reference to:

ABBA LIBOR

BFed funds

CISDA LIBOR

DEURIBOR

Answer : A

Question 7

A CD can usually only be issued by what type of institution?

ACredit institution

BInvestment bank

CDiscount house

DAll of the above

Answer : A

ACI 3I0-008 ACI Dealing Certificate Exam Practice Test