Weekend Sale - Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: xmaspas7

Easiest Solution 2 Pass Your Certification Exams

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.

Page: 7 / 8
Total 740 questions

What happens when a coupon is paid on bond collateral during the term of a sell/buy-back?

A.

Nothing

B.

A margin call is triggered on the seller

C.

A manufactured payment is made to the seller

D.

The equivalent value plus reinvestment income is deducted from the repurchase price

For which one of the following disputes is the Chairman and members of the ACI’s CFP ready to assist through the ACI’s Expert Determination?

A.

all legal disputes

B.

disputes related to market practice or conduct as set out in the Model Code or in any other Code of Conduct

C.

disputes between two market participants, at least one of them being a member of ACI

D.

disputes related to over-the-counter financial instruments as detailed in appendix four of the Model Code

A transaction that entails market price risks may be entered into in the absence of a market price risk limit...

A.

...only at the discretion of the head of treasury.

B.

...only at the discretion of the head of trading.

C.

...as long a counterparty and issuer limit is in place.

D.

... is not permitted.

When a broker needs to switch a name this should be done:

A.

only after consultation with the local regulator

B.

only if the switching transaction is done at the current market rate

C.

only provided that such transactions are identified as switching transactions

D.

only after approval by the broker’s senior management

You are quoted the following market rates:

Spot EUR/USD 1.3097-00

0/N EUR/USD swap 0.08/0.11

TIN EUR/USD swap 0.29/0.34

S/N EUR/USD swap 0.10/0.13

Where can you buy EUR against USD for value tomorrow?

A.

1.299971

B.

1.309966

C.

1.309971

D.

1.310029

If you sell forward USD to a client against EUR, what is the first thing you should do to cover your exposure to exchange rate movements?

A.

Sell and buy USD in the FX swap market

B.

Sell USD in the spot market

C.

Buy USD in the spot market

D.

Buy and sell USD in the FX swap market

What is Funds Transfer Pricing in the ALM process?

A.

A maturity analysis of a bank’s interest-bearing assets and interest-bearing liabilities.

B.

A method used to measure how much each source of funding is contributing to overall profitability.

C.

A calculation of the spread between the duration of the interest-bearing assets and the interestbearing liabilities.

D.

The evaluation and management of the gap between a bank’s volume of loans and deposits.

You have prepared the following economic capital table for the next ALCO meeting:

For which of the following risks should you consider actions?

A.

credit risk

B.

interest rate risk

C.

liquidity risk

D.

currency risk

How is an outright forward FX transaction quoted?

A.

pared points

B.

Depends on the term

C.

Depends on whether it is interbank or to a customer

D.

Depends on the currency pair

What is the major difference between a CD and a deposit?

A.

The CD yields a higher rate of return

B.

The CD has less credit risk

C.

The CD is a transferable instrument

D.

The CD has a shorter range of maturities

What is the maximum maturity of a US Treasury bill?

A.

One year

B.

270 days

C.

183 days

D.

5years

Which of the following is a Model Code good practice regarding the passing of names?

A.

Bank dealers should, wherever possible, give brokers prior indication of counterparties with whom they would be unwilling to do business.

B.

Brokers may divulge the names of principals prematurely to induce a counterparty to transact.

C.

Dealers should never give brokers guidance on the extent of their price differentiation across broad categories of counterparties.

D.

When a principal’s name proves unacceptable to another principal, the broker is bound to divulge who refused it.

Using the following rates:

3M (90-day) EUR deposit 0.25%

6M (180-day) EUR deposit 0.50%

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

A.

0.25%

B.

0.375%

C.

0.75%

D.

0.50%

In dealing terminology, what does “my risk” refer to?

A.

the market amount for which the quote is valid

B.

the acknowledgement by the broker that he may be stuffed

C.

the acknowledgement by the dealer receiving the quote that the rate may have to be re-quoted

D.

the quoting dealer cautions the receiver of the quote that the price may have to be re-quoted at the receiver’s risk

What are financial market professionals not explicitly required by the Model Code to clarify and agree to in writing?

A.

that the customer understands he will be charged for advisory services that are provided

B.

that the customer understands the terms, conditions and risks of the transaction

C.

that the customer understands that any information or explanation should not be interpreted as investment advice or recommendations

D.

that the customer understands he is entering into the transaction at his own risk and for his own account.

Which of the following is a measure of a bank’s gross exposure to foreign exchange rate risk?

A.

The maturity mismatch among assets and liabilities denominated in the home and reporting currencies.

B.

The gap between variable and fixed rate assets and liabilities across all currencies.

C.

The sum of all assets in one currency minus the sum of all liabilities in that same currency.

D.

The sum of all off-balance sheet assets in one foreign currency minus the on-balance sheet equity in another currency.

How can material divergences between the value of cash and collateral be managed in a documented sell/buy-back?

A.

Margin maintenance

B.

Re-pricing

C.

Margin maintenance or re-pricing, but usually margin maintenance

D.

Margin maintenance or re-pricing, but usually re-pricing

How is a USD Overnight Indexed Swap (OIS) settled?

A.

Periodic exchange of fixed and floating payments up to and including maturity

B.

At maturity by net payment

C.

After maturity by exchange of fixed and floating payments

D.

Two days after maturity by net payment

What is the recommended follow-up procedure in case of a settlement discrepancy?

A.

All investigation cases should be handled within the same day B. All investigation cases should be handled within 2 days

B.

Investigation cases received before noon should be handled within the same day and those received after midday should be handled before noon the next day

C.

Investigation cases received before noon should be handled within the same day and those received after midday within 24 hours

In foreign exchange markets, the first currency in a currency pair is:

A.

The quoted currency

B.

The base currency

C.

The counter currency

D.

The terms currency

A long collar is:

A.

A purchase of a cap and a sale of a floor

B.

A purchase of a floor and a sale of a cap

C.

A purchase of a cap and a purchase of a floor

D.

A sale of a cap and a sale of a floor

You quote your customer EUR/USD 1.3070-73, However they need the rate quoted in EUR per USD. What do you quote?

A.

1.3073-70

B.

0.7651-49

C.

0.7646-49

D.

0.7649-51

What is the name of a swap in which the counterparties sell currencies to each other with a concomitant agreement to reverse the exchange of currencies at a fixed date in the future at the same price, and where the interest rates for the two currencies are reflected in the two exchanges but paid separately?

A.

aFXswap

B.

an in/out swap

C.

a currency swap

D.

a quanto swap

Four banks provide you with quotes in CHF/SEK. Which is the best price for you to buy SEK?

A.

6.5825

B.

6.5820

C.

6.5815

D.

6.5830

What are de minimis claims?

A.

claims of less than USD 100.00

B.

claims of less than USD 1,000.00

C.

claims of less than EUR 100.00

D.

claims of less than EUR 1,000.00

In the unforeseen event that a particular maturity date is declared a public holiday, what is standard market practice for spot FX?

A.

to extend the contract to the next business day

B.

to shorten the contract to the previous business day

C.

The two parties involved agree to a new maturity date.

D.

There is no standard market practice. ACIs Committee for Professionalism decides the issue on a case-by-case basis.

Which SWIFT message should be used to advise the netting position of a currency resulting from FX, NDF, options and other trades?

A.

MTn99

B.

MT300

C.

MT370

D.

MT670/671

Under what circumstances are banks allowed to “park” deals or positions with a counterparty?

A.

Not under any circumstances, since the “parking” of deals or positions should be prohibited

B.

in conditions of exceptional volatility

C.

only if the two counterparties to the deal agree

D.

only if “parking” of deals or positions has been approved by senior management

Which of the following will tend to have the higher yield?

A.

Treasury bill

B.

Repo against Treasury bill collateral

C.

They have the same yield

D.

Cannot say

After having quoted a rate of 1.5005-10, the quoting bank says, “Your risk”. This means:

A.

The quoted rate is subject to change at the risk of the price-taker

B.

The quoting bank is reminding you of the market risk of your potential trade

C.

This is a requirement of any market maker

D.

The market maker needs to check your credit limit

Page: 7 / 8
Total 740 questions
Copyright © 2014-2025 Solution2Pass. All Rights Reserved