ACI 3I0-010 Exam Questions Instant Access

Question 1

If a spot next EUR/USD FX swap is traded on Monday, 18 August, and there are no holidays in the relevant currencies during the week of August 18 - 22 what would be the value dates of the two swap legs ?

A20 - 27 August

B20 August - 20 September

C20 - 21 August

D19 - 20 August

Answer : C

Question 2

What are the consequences for credit risk when a collateral agreement is added to a netting agreement?

Aa collateral agreement eliminates the future replacement risk

Ba collateral agreement can reduce market risk

Ca collateral agreement can reduce operational risk

Da collateral agreement can reduce the replacement risk

Answer : D

Question 3

If the back office staff receive a trade that is incomplete, which information is absolutely essential for processing the trade?

Athe clearing house phone number

Bthe account number to which fees are booked

Cthe name of the counterpartys dealer

Dthe name of the counterparty

Answer : D

Question 4

Which settlement system offers the lowest risks?

AEBA

BCLS

CTARGET

DEAF

Answer : B

Question 5

In the bond market, which of the following is true about the settlement amount?

AThe settlement amount is the sum of the redemption value plus all coupons paid by the issuer.

BIf the yield and the coupon are exactly the same, the settlement amount and the face value will be identical.

CThe settlement amount is always calculated using the redemption price.

DOn a coupon date, if the bond quotes at par, the settlement amount and the face value will be identical.

Answer : D

Question 6

A Certificate of Deposit (CD) was issued at 7%, which you now purchase at 5 3/4%. What would you expect to pay?:

Athe original face value of the CD

Bmore than the originally paid value

Cless than the originally paid value

Dthere is too little information to decide

Answer : B

Question 7

CLS stands for which of the following:

AContinuous Linked Settlement

BCash Limit Standards

CCredit Linked Securities

DCorrespondent Limit System

Answer : A

ACI Operations Certificate 3I0-010 Exam Questions