ACI 3I0-008 Exam Practice Test Instant Access

Question 1

The organisational structure of market participants should ensure a strict segregation between front and back office of:

ADuties and reporting lines.

BSystems.

CCareer paths.

DAll of the above.

Answer : A

Question 2

Where internet trading facilities are established by a bank for a client, the conditions and controls should be stated in a rulebook produced by:

AThe bank.

BThe local bankers association.

CThe local regulator.

DNegotiation between the bank and client.

Answer : A

Question 3

The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75- 80%. As collateral, you are offered EUR25 million nominal of the 5.5% OAT April 2006, which is worth EUR 28,137,500. If you impose an initial margin of 1%, the Repurchase Price is:

AEUR 27,947,276.43

BEUR 27,946,077.08

CEUR 27,950,071.43

DEUR 27,948,871.97

Answer : D

Question 4

If EUR/USD is quoted to you as 1.1050-53, does this price represent?

AThe number of EUP per USD

BThe number of USD per EUR

CDepends on whether the price is being quoted in Europe or the US

DDepends on whether the price is being quoted interbank or to a customer

Answer : B

Question 5

Spot cable is quoted at 1.6048-53 in the brokers and you quote a customer 1.6050-55 in USD 3 million, If they sell USD to you, how much GSP will you be short of?

A4,816,500.00

B1,868,809.57

C1.868,576.77

D4,815,900.00

Answer : C

Question 6

To curb attempted fraud, banks should:

ARequire greater vigilance by the management and staff.

BTake particular care when the beneficiary is a third party to the deal.

CEnsure that details of all telephone deals which do not include pre-agreed standard settlement instructions are confirmed by telex or similar means without delay.

DAll of the above.

Answer : D

Question 7

The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR1O million nominal of the 5.25% bund July 2012, which is worth EUR 11,260,000, with no initial margin. The Repurchase Price is:

AEUR 10,000,500.00

BEUR 10,000,486.11

CEUR 11,260,563.00

DEUR 11,260,547.36

Answer : C

ACI Dealing Certificate 3I0-008 Exam Practice Test