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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

When dealing with a fund manager, who will allocate shares in a transaction to his unknown clients after the transaction has been executed with you, you should:

A.

Agree in writing with the fund manager that the allocation will be confirmed as soon as practicable after the transaction is executed.

B.

Insist on the allocation being made and confirmed before the transaction is executed.

C.

Agree in writing with the fund manager that he will guarantee the transaction until the allocation is confirmed.

D.

Any of the above.

A bank that has quoted a firm price is obliged to deal:

A.

At that price.

B.

At that price in a marketable amount.

C.

At that price in a marketable amount with an acceptable name.

D.

At that price in a marketable amount with an acceptable name and provided the market price has not moved excessively.

You are quoted the following market rates:

spot EUR/GBP 0.6670

6M (182-day) EUR 2.35%

6M (182-day) GBP 375%

What is 6-month EUR/GBP?

A.

0.6675

B.

0.6715

C.

0.6717

D.

0.6718

What are IMM dates?

A.

The 10th of March, June, September and December.

B.

The third Wednesdays of January, April, July and October.

C.

The Mondays before the third Wednesdays of March, June, September and December.

D.

The third Wednesdays of March, June, September and December.

What is the ISO code for the currency of Hungary?

A.

HUG

B.

HKD

C.

HRN

D.

HUF

You are quoted the following market rates:

spot EUR/CHF 1.1005

6M (180-day) EUR 3.45%

6M (180-day) CHF 1.25%

What are the 6-month EUR/CHF forward points?

A.

+121

B.

+120

C.

-116

D.

-119

What is the incentive for market-making?

A.

Bid/offer spread

B.

Flow information

C.

Relationships

D.

All of the above

What is an FX swap?

A.

An exchange ot two streams of interest payments in different currencies and an exchange of the principal amounts of those currencies at maturity

B.

A spot sale (purchase) and a forward purchase (sale) of two currencies agreed simultaneously between two parties

C.

An exchange of currencies on a date beyond spot and at a price fixed today

D.

None of the above

What are 1MM dates?

A.

the tenth of the following months: March, June, September and December

B.

the third Wednesday of January, April, July and October

C.

the Monday before the third Wednesday of March, June, September and December

D.

the third Wednesday of March, June, September and December

Which of the following statements is true?

A.

Banks should not ask brokers to disclose details of third party transactions unless they are between overseas principals.

B.

Banks should not ask brokers to disclose details of third party transactions unless these transactions are already settled.

C.

Banks should not ask brokers to disclose transactions between third parties in any circumstances.

D.

Banks should not ask brokers for details of third party transactions unless senior management has approved.

When you are accepting a stop loss order, you must:

A.

Ensure that your counterparty understands the terms under which your bank accepts the order.

B.

Ensure that your counterpart can be contacted in the event of unusual situations or events or extremely volatile market conditions.

C.

Ensure that your counterparty understands that any guarantee or fixed price execution requires agreement in writing.

D.

All of the above.

A 3-month (91-day) UK Treasury bill with a face value of GBP 50,000,000.00 is quoted at a yield of 4.25%. How much is the bill worth?

A.

GBP 47,875,000.00

B.

GBP 49,462,847.22

C.

GBP 49,470,205.48

D.

GBP 49,475,760.27

Which of the following is sometimes called two-name paper?

A.

ECP

B.

BA or bank bill

C.

Treasury bill

D.

CD

Payment and settlement instructions should be passed:

A.

As quickly as possible.

B.

Within 24 hours of the transaction.

C.

Setore 10:00 am on the value date.

D.

Betore close of business on the transaction date.

What usually happens to the collateral in a tri-party repo?

A.

It is put at the disposal of the buyer

B.

It is held by the seller in the name of the buyer

C.

It is held by the tn-party agent in the name of the buyer

D.

It is frozen in the sellers account with the tri-panty agent

What is one of the responsibilities of the Middle Office according to the Model Code?

A.

Sending settlement instructions

B.

Investigating settlement discrepancies

C.

Keeping a contact list of all back office staff of the bank’s counterparties

D.

Exchanging standard settlement instructions (SSIs)

You have a USD loan that is priced at 3-month LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting:

1x3 USD FRA. 1.95-98%

1x4 USD FRA. 2.07-10%

1x6 USD FRA 2.25-28%

To hedge the next LIBOR fixing, you should:

A.

Sell a 1x3 FRA at 1.95%

B.

Buy a 1x3 FRA at 1.98%

C.

Buy a 1x4 FRA at 2.10%

D.

Sell a 1x4 FRA at 2.10%

If 6-month EUR/AUD is quoted at 29/32, which of the following statements is correct?

A.

EUR rates are higher than AUD rates in the 6-month

B.

AUD rates are higher than EUR rates in the 6-month

C.

There is a positive EUR yield curie

D.

There is not enough information to decide

You are quoting forward FX prices to a broker subject to finding a counterparly for a matching transaction. The Model Code says:

A.

You must tell the broker, who must qualify your quotes.

B.

For credit reasons, you must tell the broker when he presents a name.

C.

You cannot do this.

D.

The Model Code does not make recommendations on this subject.

A Eurozone-based bank that is liability-sensitive to market interest rate changes might reduce interest rate risk by:

A.

entering into a pay fixed I receive variable standard interest rate swap

B.

entering into a receive fixed I pay variable amortizing interest rate swap

C.

entering into a EUR/USD FX swap

D.

entering into a receive fixed I pay variable standard interest rate swap

For which of the following reasons is the extension of forward contracts at non-current rates is discouraged:

i. These could be used to conceal profit or losses.

ii. These could be used to perpetrate fraud.

iii. These could result in an unauthorised extension of credit.

iv. These could result in confusing settlement instructions.

A.

(i), (ii), (iii), & (iv).

B.

(i), (ii) & (iii).

C.

(i) & (iii).

D.

none of the above.

Dealers are allowed to trade for their own account only if:

A.

they have good track records in dealing both for their institution and for themselves

B.

there have been no previous conflicts of interest in the dealing room

C.

there is a clearly defined and written policy about the matter

D.

the dealers see no conflict of interest in such dealing

Confirmations must be sent out

A.

Immediately after the deal is done.

B.

As quickly as possible after the deal is done.

C.

By electronic media only, e.g. fax, telex.

D.

Not later than the value date of the first leg of the transaction.

Which position below is NOT a component of common equity Tier 1 capital?

A.

innovative hybrid capital instruments with incentives to redeem

B.

common shares issued by bank

C.

retained earnings

D.

stock surplus (share premium)

How can options be used to synthesize a short position in the underlying commodity?

A.

A short put option + long call option at the same strike price

B.

A long put option + short call option at the same strike price

C.

A short put option + short call option at the same strike price

D.

A long put option + long call option at the same strike price

When an employee executes a personal trade in advance of a client’s or institution’s order to benefit from the anticipated movement in the market price following the execution of a large trade, it is called:

A.

front running

B.

ex ante trading

C.

insider dealing

D.

forward-facing

What is the day count/annual basis convention for euroyen deposits?

A.

Actual/365

B.

Actual/360

C.

Actual/actual

D.

30E/360

You are quoted the following market rates:

Spot USD/JPY 123.65

1M (30-day) USD. 2.15%

1M (30-day)JPY 0.10%

What is 1-month USD/JPY?

A.

123.44

B.

123.65

C.

123.86

D.

123.90

Click on the Exhibit Button to view the Formula Sheet. Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO /USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:

A.

The name of Banks A and B.

B.

The name of Bank B only.

C.

The amount that was bid but not the name of Bank A.

D.

None of the above

Which of the following definitions of a nostro account is correct?

A.

A nostro account is an account held by a bank in a foreign country in the banks domestic currency.

B.

A nostro account is an account held by a bank in a foreign country for cash collateralising OTC derivative positions with banks in that country.

C.

A nostro account is an account held by a bank in a foreign country in the currency of that country.

D.

A nostro account is an account held by a bank in its home country in a foreign currency.

Page: 4 / 8
Total 740 questions
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