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.

ACI 3I0-012 Premium Access     Download Demo    
Page: 1 / 8
Total 740 questions

Who takes the counterparty risk on the seller in a to-party repo?

A.

The buyer

B.

The to-party agent

C.

A third-party guarantor

D.

A central clearing counterparty

Which of the following statements is correct?

A.

An adjusted settlement amount is paid at the end of the FRA contract period that includes reinvestment interest for late payment

B.

An unadjusted settlement amount is paid at the end of the FRA contract period

C.

An adjusted settlement amount is paid at the start of the FRA contract period that is discounted for early payment

D.

An unadjusted settlement amount is paid at the start of the FRA contract period

What are the secondary market proceeds of a CD with a face value of EUR 5,000,000.00 and a coupon of 3% that was issued at par for 182 days and is now trading at 3% but with only 7 days remaining to maturity?

A.

EUR 4,997,085.03

B.

EUR 5,000,000.00

C.

EUR 5,071,086.45

D.

EUR 5,072,874.16

Under Basel Rules, the Basic Indicator Approach is a regulatory framework for:

A.

liquidity risk

B.

business risk

C.

operational risk

D.

funding risk

Repo is said to have “double indemnity” due to the creditworthiness of the counterparty and:

A.

A written legal agreement between the parties

B.

The oversight of the transaction by the custodian of the collateral

C.

The creditworthiness of the collateral

D.

The right of close-out and set-off in an event of default

Selling a FRA has the same interest rate exposure as:

A.

Opening a positive gap

B.

Going over-borrowed

C.

Making a forward-forward loan

D.

Taking a forward-forward deposit

The “spot basis” of a 2 against 4 months EUR/USD forward/forward swap is:

A.

usually the current spot EUR/USD mid-market rate

B.

commonly the prevailing 4-month forward EUR/USD mid-rate

C.

always the forward EUR/USD bid rate of the first swap leg

D.

generally the prevailing 2-month forward EUR/USD mid-rate

What is the probability of an ‘at-the-money’ option being exercised?

A.

Less than 50% probability

B.

50% probability

C.

More than 50% probability

D.

Zero probability

An interest rate swap (IRS) is:

A.

A contract to exchange one stream of interest payments for another

B.

A temporary exchange of one deposit for another of a longer maturity in the same currency

C.

A forward-forward contract

D.

A contract to exchange an interest rate stream in one currency for another one in a different currency

What recommendation does the Model Code make to banks accepting a stop-loss order?

A.

The Model Code emphasizes the importance of clear, concise documentation and on-going lines of communication.

B.

Bank management must guarantee a fixed price execution to the counterparty.

C.

The Model Code recommends that only experienced dealers should be allowed to take such orders.

D.

Bank staff must secure the approval of the counterparty’s management to accept such orders.

How would you delta hedge an ‘at-the-money’ long call option?

A.

Go short of the underlying commodity equal to 50% of the size of the option contract

B.

Go long of the underlying commodity equal to 50% of the size of the option contract

C.

Go long of the underlying commodity equal to the full size of the option contract

D.

Go short of the underlying commodity equal to the full size of the option contract

In the international market, a FRA in USD is usually settled with reference to:

A.

BBA LIBOR

B.

Fed funds

C.

ISDALIBOR

D.

EURIBOR

Which of the following correctly states the Model Code’s recommendations regarding electronic trading and broking?

A.

Liquidity providers should be cognizant of reputational risks when supplying liquidity for onward third party consumption.

B.

Market participants must not seek information as to the legal status of a potential counterparty before allocating credit or trading status.

C.

Transactions should be handled in accordance with the regulator’s dealing rule book.

D.

Access to systems internally and at the client interface must be strictly controlled by the dealers.

An option premium is normally a positive function of:

A.

the traded volume

B.

the historical volatility of the price of the underlying commodity

C.

the style (European or American) of the option

D.

the implied volatility of the price of the underlying

A euro zone-based bank that is asset-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 standard interest rate swap

C.

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

D.

entering into a GBP/USD FX swap

When a deal is done via a broker:

A.

it need not be confirmed between the counterparties as the broker confirms it immediately with both counterparties

B.

it should also be confirmed directly between the two counterparties

C.

it is important to note that broker confirmations are bilateral confirmations between the principals of the trade

D.

the dealer should obtain acknowledgement that the deal has been agreed to but may assume agreement to the trade in the absence of such acknowledgement

For which of the following might an MT370 be used?

A.

To confirm an FX transaction

B.

To advise the netting position of a currency in NDFS

C.

To advise changes in SSIs

D.

To confirm a MM transaction

Today’s spot value date is the 29th of February. What is the maturity date of a 4-month USD deposit deal today? Assume no bank holidays.

A.

Thursday 27th June

B.

Friday 28th June

C.

Saturday 29th June

D.

Monday 1st July

3-month EUR/USD FX swaps are quoted to you at 8/12. If the “points are in your favor”, what have you done?

A.

Bought and sold 3-month EUR/USD through the swap

B.

Sold and bought 3-month EUR/USD through the swap

C.

Made the quote

D.

Cannot say

What happens if an instruction remains unmatched and/or unsettled through CLS Bank?

A.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trades outside of CLS Bank on a net basis.

B.

If there is only one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally decide to settle the trade outside of CLS Bank on a net basis.

C.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trade outside CLS Bank on a gross basis.

D.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally instruct the CLS Bank to settle the trades.

You are quoted the following market rates:

Spot EUR/USD 1.3150

3M (92-day) EUR 0.20%

3M (92-day) USD 0.44%

What is 3-month EUR/USD?

A.

1.3159

B.

1.3158

C.

1.3142

D.

1.3230

You buy a 30-day 4% CD with a face value of GBP 20,000,000.00 at par when it is issued. You sell it in the secondary market after 10 days at 4.05%.

What is your holding period yield?

A.

4.05%

B.

3.891%

C.

3.838%

D.

1.946%

Prudential regulation of banking book liquidity risk is dealt with by the Basel Committee (Basel II / Basel III) in the context of:

A.

capital adequacy regulations in Pillar 1

B.

market risk and Tier 3 capital elements

C.

internal management procedures subject to supervisory review in Pillar 2

D.

market discipline, disclosure and transparency in Pillar 3

An Overnight Indexed Swap (OIS) is:

A.

A fixed-floating money market swap in which the floating rate is an overnight index fixed periodically over the term of the swap

B.

A fixed-floating money market swap in which the floating rate is the mean of the overnight index over the term of the swap

C.

A fixed-floating money market swap in which the floating rate is an overnight index compounded daily

D.

A floating-for-floating rate swap in different currencies in which both floating rates are overnight indexes compounded daily

You sold a JPY 500,000,000 1x12 FRA at 0.35%. The settlement rate is 11-month (334-day) JPY LIBOR, which is fixed at 0.4450%.

What is the settlement amount at maturity?

A.

You pay JPY 440,694

B.

You receive JPY 440,694

C.

You pay JPY 438,882

D.

You receive JPY 438,882

Which of the following is required for institutions acting as prime brokers?

A.

They must remain neutral and stay out of disputes between their customers.

B.

They must rely on the execution venue to resolve disputes.

C.

They must delegate the resolution of broken trades downstream to their clients.

D.

They must take responsibility for the swift resolution of any disputes.

The spot/next repo rate for the 5% Bund 2018 is quoted to you at 1.75-80%. You sell bonds with a market value of EUR 5,798,692.00 through a sell/buy-back. The Repurchase Price is:

A.

EUR 5,798,982

B.

EUR 5,799,497

C.

EUR 5,746,376

D.

EUR 5,000,694

Under Basel rules the risk weight for claims on unrated sovereigns and their cennl banks in the standardized approach is:

A.

75%

B.

100%

C.

150%

D.

350%

Which of the following currency risks could only be hedged by a non deliverable forward (NDF)?

A.

an exposure in Latvian Lats (LVL)

B.

an exposure in Russian Rouble (RUB)

C.

an exposure in Romanian Leu (RON)

D.

an exposure in Bulgarian Lev (BGN)

The spot/week repo rate for the 4.25% OAT 2015 is quoted to you at 2.35-38%. You buy bonds with a market value of EUR 3,295,500.00 through a sell/buy-back. The Repurchase Price is:

A.

EUR 3,297,004.19

B.

EUR 3,297,005.86

C.

EUR 3,297,025.09

D.

EUR 3,296,985.23

ACI 3I0-012 Premium Access     Download Demo    
Page: 1 / 8
Total 740 questions
Copyright © 2014-2025 Solution2Pass. All Rights Reserved