ACI 3I0-010 Exam Questions Instant Access

Question 1

Which of the following steps is typical for an interbank FX trade process flow?

Aphysical delivery

Bcollateral management

Cnegotiation of fees

Dsettlement

Answer : D

Question 2

Under what circumstances would you have to pay overdraft interest?

Aif the counterparty's fees are higher than yours

Bif your nostro account balance at the end of the month is less than the amount of fees paid

CIf your nostro account shows a debit balance you will be charged overdraft interest on the remaining debit amount.

DOverdraft interest is charged if your collateral at the central bank is lower than your cash balance

Answer : C

Question 3

Your dealer has sold EUR 5,000,000.00 against USD at 1.0945. How much would you expect to receive in settlement?

AUSD 5,472,500.00

BUSD 3,618,523.32

CUSD 5,453,650.00

DUSD 3,619,487.12

Answer : A

Question 4

What documents and/or information should you hold in order to start an investigation?

AFrom the counterparty: the trade confirmation. In-house: the trade confirmation, nostro reconciliation details, the dealing ticket and eventually dealing-system conversation printout

BFrom the counterparty: the dealers name and phone number. In-house: dealers name as well as the exact time the deal was processed

CFrom the counterparty: the trade confirmation. In-house: the open item list, nostro reconciliation details and the dealing ticket

DFrom counterparty: the balance report and the trade confirmation; In-house: the dealing-system conversation printout

Answer : A

Question 5

Some large losses occurred in the past from derivatives trading because:

ADerivatives brokers significantly over-charged their clients

BInstitutions did not understand the leverage of their transactions

CMoney managers engaged in intra-day trading

DMoney managers embezzled money using derivatives

Answer : B

Question 6

An American-style option is:

Aan option traded in USD

Ban option which can be exercised at any time between the purchase and expiration date

Can option based on any US dollar instrument

Dan option which can be exercised only at maturity

Answer : B

Question 7

The difference between the bid and the offer rate of a money market quotation is called:

Athe margin

Bthe spread

Cthe variation

Dthe premium

Answer : B

ACI Operations Certificate 3I0-010 Exam Questions