ACI 3I0-010 Exam Practice Test Instant Access

Question 1

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 2

The control failings involving Barings and Daiwa highlight the critical importance of what operational risk management practice?

Athe taping of conversations between counterparties

Bmodel signing-off and implementation controls

Cthe separation between front/back office duties

Dthe existence of contingency plans

Answer : C

Question 3

All trades, internal and external, should be entered into trade capture systems:

Athe same day they are executed

Bas soon as possible

Cwithin 24 hours of execution

Dwithin an hour of execution

Answer : B

Question 4

If today is Wednesday, what are the value days of a spot next money market deal assuming there are no intervening bank holidays?

AWednesday against Thursday

BThursday against Friday

CFriday against Monday

DMonday against Tuesday

Answer : C

Question 5

Which of the following are examples of "contracts for difference"?

Aforward rate agreement (FRA) and non deliverable forward (NDF)

BFX Swap and interest swap

Cspot FX deal and non deliverable forward (NDF)

DFX Swap and Eurocurrency deposit

Answer : A

Question 6

A "basis point", expressed as a percentage, is:

A1%

B0.01%

C0.001%

D0.0001%

Answer : B

Question 7

Experience has shown that recourse to taped telephone conversations proves invaluable to the speedy resolution of disputes. Therefore, the Model Code recommends:

Athat all telephone conversations be taped without informing any of the counterparties

Bthat all telephone conversations be taped subject to the consent of the counterparties

Cthat all telephone conversations between dealers and brokers be recorded

Dthat only telephone conversations between FX dealers be recorded

Answer : C

ACI 3I0-010 ACI Operations Certificate Exam Practice Test