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3I0-012 ACI Dealing Certificate Free Practice Exam Questions (2025 Updated)

Prepare effectively for your ACI 3I0-012 ACI Dealing Certificate certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

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Total 740 questions

The Liquidity Coverage Ratio imposed by Basel III requires a bank:

A.

to keep enough highly liquid assets to cover its net liabilities for the next 10 days to guard against severe liquidity stress

B.

to keep enough highly liquid assets to cover its net liabilities for the next 30 days to guard against severe liquidity stress

C.

to keep enough highly liquid assets to cover its net liabilities for the next 60 days to guard against severe liquidity stress

D.

to retain enough liquidity to cover its assets against severe default risk

The popularity of FX-trading via Internet platforms has serious implications for the applicability of traditional rules such as “Know Your Customer”. Which of the following are correct?

A.

“Know Your Customer” rules cannot be applied online and banks will have to rely instead on new safeguards such as third-party authentication.

B.

“Know Your Customer” rules apply only to retail customers and are therefore irrelevant to currency trading.

C.

In practice, banks can avoid “Know Your Customer” rules by limiting online deal size to EUR 100,000.00 or equivalent.

D.

No trading should be carried out without first identifying and setting up the counterparty; this includes “Know Your Customer” procedures.

A 3-month (90-day) NZD deposit is 2.75% and 6-month (180-day) NZD deposit is 3.00%. What is the 3x6 NZD deposit rate?

A.

3.2281%

B.

3.2278%

C.

3.00%

D.

2.875%

You are a sales person in a bank and are about to sell a structured note to a non-professional customer. Before finalizing the transaction you remember to double-check the customer’s charter. You learn that the customer is not allowed to invest in structured products. The risk you have avoided is most likely to be classified as:

A.

credit risk

B.

liquidity risk

C.

legal risk

D.

refinancing risk

A dealer needs to buy USD against SGD. Of the following rates quoted to him, which is the best rate for him?

A.

1.4323-26

B.

1.4320-25

C.

1.4315-20

D.

1.4318-23

A 6-month SEK/NOK Swap is quoted 140/150. Spot is 0.9445. Which of the following statements is correct?

A.

SEK interest rates are higher than NOK interest rates

B.

NOK interest rates are higher than SEK interest rates

C.

NOK interest rates are higher than USD interest rates

D.

SEK interest rates and NOK interest rates are converging

Using the following rates:

3M (90-day) eurodeposits3.50%

6M (180-day) eurodeposits3.75%

What is the rate for a deposit, which runs from 3 to 6 months?

A.

3.625%

B.

3.285%

C.

3.965%

D.

3.835%

How long does the Model Code recommend that tape recordings of dealers/brokers should be kept?

A.

At least 2 months

B.

One year

C.

Up to one month

D.

Until the maturity of the deal

3-month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?

A.

unchanged

B.

118/116

C.

109/107

D.

106/104

The use of mobile phones from within the dealing room for transacting business:

A.

Is not considered good practice.

B.

Is accepted in case of direct deal input into the bank’s system.

C.

Is accepted for senior dealers.

D.

Is accepted for hedging transactions.

You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced that the story is true, but have a friend at another bank who you know has very large exposures to this firm and would be seriously damaged by a default. What advice does the Model Code give?

A.

Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should not be passed on in any circumstances.

B.

Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be discussed only with great care.

C.

Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be reported to the regulator in order to provide warning of possible systemic problems.

D.

You have a duty to warn counterparties but should make clear that the information is unsubstantiated.

In a dispute between the dealer and a broker, the Model Code recommends that this should be referred in the first instance to:

A.

Central bank.

B.

Senior management of the bank and the brokerage firm.

C.

Head of compliance.

D.

ACI’s Committee for Professionalism (CFP).

Today’s date is Thursday 12th December. What is the spot value date? Assume no bank holidays.

A.

14th December

B.

15th December

C.

16th December

D.

17th December

Management policy on the use of mobile devices by trading sales and settlement staff should:

A.

Ban them from the dealing room or back office.

B.

State whether they are allowed in the dealing room and back office, and can be used.

C.

Ban their use in the dealing room or back office.

D.

Restrict their use to senior management and authorised out-of-hours trading and sales staff.

Cable is quoted at 1.6075-80 and you say “5 yours!” to the broker. What have you done?

A.

Sold USD 5 million at 1.6075

B.

Sold GBP 5 million at 1.6075

C.

Bought GBP 5 million at 1.60B0

D.

Bought USD 5 million at 1.6080

Which of the following is true?

A.

The Euronext.LIFFE short sterling futures contract has a tick value of GBP 12.50 and a face value of GBP 1,000,000

B.

The Euronext.LIFFE JPY futures contract has a tick value of JPY 2,500 and a face value of JPY 1,000,000,000

C.

The CME eurodollar futures contract has a minimum price interval of one-quarter tick

(0.0025) for the nearest contract

D.

All of the above

Where the Committee for Professionalism of the ACI has been notified of a breach of the letter or spirit of the Model Code, it

A.

Will examine the complaint.

B.

May consult with the local ACI.

C.

Will bring the matter to the attention of the local regulator.

D.

None of the above.

Where repos or securities lending transactions are entered into, the Model Code recommends:

A.

Documentation should be in place beforehand.

B.

Management should approve all transactions.

C.

Copies of the underlying documentation should be lodged with regulators.

D.

All of the above.

A disgruntled customer claims that he should not have to settle an FRA with you because it is really just a wager. What type of risk are you exposed to?

A.

Credit risk

B.

Legal risk

C.

Settlement risk

D.

Basis risk

Which of the following is not in the Model Code?

A.

Banks and brokers should record, by tapes or other such means, conversations between dealing counterparties.

B.

There is no need to inform new counterparties and clients that conversations will be recorded.

C.

On completion of recordings, tapes should be kept for a period sufficient to enable the details of any transaction contained therein to be confirmed.

D.

The storage of recorded tapes should be strictly managed to prevent their contents from being tampered with.

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?

A.

4,816,500.00

B.

1,868,809.57

C.

1.868,576.77

D.

4,815,900.00

You quote the following rates to a customer spot GBP/CHF 2.2005-10

3M GBP/CHF swap 120/115

At what rate do you sell GBP to a customer 3-month outright?

A.

2.1890

B.

2.2125

C.

2.1895

D.

2.1885

A person who appears to be a technician asks for your help in accessing treasury systems as he has forgotten his list of access codes. The Model Code recommends:

A.

You should provide all reasonable assistance.

B.

You should report the request immediately to senior management.

C.

Do not get involved; you may be at risk.

D.

There is no recommendation in the Model Code.

Dealers are allowed to trade for their own account if:

A.

The dealers have good track records in their dealing both for the institution and for themselves.

B.

There has been no previous conflicts of interest in the dealing room.

C.

There is a clearly laFd down policy.

D.

The dealers see no conflict of Interest in such dealing.

You have quoted your customer the following eurodollar deposit rates:

1M 5.375-25%

2M 5.4375-3125%

3M 5.5-375%

The customer says, “I give you USD 20 million in the two’s”.

What have you done?

A.

Borrowed USD 20 million at 5.3125%

B.

Lent USD 20 million at 5.4375%

C.

Borrowed USD 20 million at 5.4375%

D.

Lent USD 20 million at 5.3125%

A 3-month (90-day) USD deposit is 5.5625% and 6-month (180-day) USD deposit is 5.75%. What is the 3x6 USD deposit rate?

A.

5.8342%

B.

5.8561%

C.

5.8425%

D.

5.75%

You are quoted the following market rates:

spot GBP/USD. 1.6530

9M (272-day) GBP. 3.60%

9M (272-day) USD. 1.95%

What are the 9-month GBP/USD forward points?

A.

+206

B.

+197

C.

-195

D.

-204

What is the purpose of a long strangle option strategy?

A.

To anticipate very low volatility in the price of the underlying commodity

B.

To anticipate moderately high volatility in the price of the underlying commodity

C.

To anticipate moderate volatility in the price of the underlying commodity

D.

To anticipate very high volatility in the price of the underlying commodity

Which of the following is true?

A.

The CME eurodollar futures contract has a tick value (for one full basis point equivalent) of USD25 and a face value of USD 1,000,000

B.

The Euronext. LIFFE EURIBOR futures contract has a tick value (for one full basis point equivalent) of EUR25 and a face value of EUR 1,000,000

C.

The Euronext.LIFFE CHF futures contract has a tick value (for one full basis point equivalent) of CHF25 and a face value of CHF 1,000,000

D.

All of the above

You and a dealer at another bank have an informal bilateral reciprocal arrangement to quote each other two-way prices. During periods of high volatility, the other dealer refuses to quote to you. The Model Code states that

A.

The other dealer should act with honour, honesty and integrity.

B.

It is a purely matter for your two institutions.

C.

Such arrangements are not in any way enforceable or binding.

D.

All of the above.

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