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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

As to general risk management principles, the Model Code mentions that the organizationalstructure should ensure independent risk management and controls. Which one of the following is not among those controls?

A.

open and effective communication channels between all levels of staff and cross-functions should be maintained.

B.

regular internal audits should be carried out together with trading and risk management to ensure early identification of internal control weaknesses

C.

complete segregation of duties between the front, middle and back office activities

D.

a separate system for independent monitoring to ensure compliance with the risk management framework should be in place

You are quoted the following market rates:

Spot EUR/USD 1.3010

6M (181-day) EUR 0.30%

6M (181-day) USD 0.50%

What is 6-month EUR/USD?

A.

1.2993

B.

1.3023

C.

1.3141

D.

1.4323

Under what conditions can an FX broker act as a position taker?

A.

if a principal refuses to honour the deal

B.

no conditions are required; the broker is entitled to take positions

C.

only if he can not find another counterparty for a name switching

D.

brokers act only as intermediaries or arrangers of deals

What does the term “mine” mean when given in response to an FX spot quotation?

A.

I buy the base currency at the bid rate.

B.

I buy the base currency at the offer rate.

C.

I buy the counter-currency at the offer rate.

D.

I sell you the base currency at the bid rate,

Under Basel III the Credit Value Adjustment will apply to:

A.

bilaterally cleared ABS trades only

B.

exchange traded derivatives only

C.

derivatives cleared via a CCP

D.

bilaterally settled OTC derivatives trades

If a 12-month AUD/NZD swap is quoted 53/47, which of the following statements would you consider to be correct?

A.

12-month AUD rates are higher than 12-month NZD rates

B.

12-month AUD rates are lower than 12-month NZD rates

C.

Spot AUD/NZD will be higher by approximately 50 points in 12 months

D.

The AUD yield curve is positive, whilst the NZD curve is negative

The Model Code is clear on “position parking”. What does it say?

A.

The parking of deals or positions with any counterparty is discouraged B. The parking of deals or positions with any counterparty should be forbidden

B.

The parking of deals or positions should be subject to a clear policy laid down in writing by senior management

C.

In jurisdictions where position parking is allowed, prior approval should be sought from the regulator

What is a hedge?

A.

A means by which to reduce a risk

B.

An equal and opposite risk

C.

A riskless transaction

D.

A means of cancelling a deal

What is the purpose of the Liquidity Coverage Ratio?

A.

to mitigate market replacement risk across markets

B.

to eliminate funding mismatches by establishing a minimum acceptable amount of stable funding

C.

to ensure that banks have enough high-quality liquid assets to survive a 30-day period of acute market stress

D.

to minimize duration risk on a bank’s assets over a one-year horizon

A bank quotes a spot rate that is verifiably incorrect and deviates substantially from the prevailing market rate.

A.

you should hit the price and hold the bank to the quoted incorrect rate, as the quoted party is entitled to hold the quoting party to an erroneous rate

B.

you should ask the dealer to check his price, as it is highly unethical for one party to hold another to an erroneously agreed rate

C.

you should point out the mistake and split the difference

D.

you should keep on dealing with this bank until the mistake is rectified

You wish to sell a customer GBP/USD for value tomorrow. How can you hedge yourself?

A.

Sell and buy GBP/USD T/N

B.

Buy and sell GBP/USD T/N

C.

Sell GBP/USD spot, and sell and buy GBP/USD T/N

D.

Buy GBP/USD spot, and buy and sell GBP/USD T/N

The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75- 80%. As collateral, you are offered EUR 25,000,000.00 nominal of the 5.5% OAT April 2015, which is worth EUR 28,137,500.00. If you impose an initial margin of 1%, the Repurchase Price is:

A.

EUR 27,947,276.43

B.

EUR 27,946,077.08

C.

EUR 27,950,071.43

D.

EUR 27,948,871.97

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