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3I0-013 ACI Operations Certificate challenging Free Practice Exam Questions (2025 Updated)

Prepare effectively for your ACI 3I0-013 ACI Operations Certificate challenging 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 386 questions

What is the advantage of instantaneous matching?

A.

It gives the counterparty more time to cancel a deal

B.

It reduces errors and costs

C.

It gives front-office staff more time to process the payment orders

D.

It reduces the number of trades

Which of the following statements about "standard settlement instructions" (SSI) is correct?

A.

The Head of Operations has the sole responsibility of ensuring the correctness and validity of the SSI set up.

B.

SSIs should be stored and maintained in the bank's general static data system.

C.

Each institution should have a separate SSI team to prevent / minimize the potential risk of fraud.

D.

SSI staff should be fully integrated within Operations to insure consistent and reliable settlement guidelines.

Which of the following is a description of a long OTC foreign currency option position?

A.

The obligation to buy one currency and to sell another currency at a predetermined price

B.

An option that uses 1MM maturities

C.

An option dealt directly between two counterparties

D.

An interest rate protection instrument dealt on an exchange trading floor

The notional amount in an interest rate swap is:

A.

The sum of all the fixed and floating rate payments

B.

The net difference between fixed and floating rate payments

C.

The amount on which floating and fixed interest payments are calculated

D.

The amount at which the two counterparties can close-out their transaction

The capital market is the general term for a financial market in which:

A.

Short-term debt, equities and securities, as well as short-term financial instruments are traded; maturities are generally less than one year

B.

Medium to long-term debt and financial instruments, as well as medium and long-term securities are traded until they reach maturity

C.

Only long-term corporate bonds, with maturities of five years or more, are bought and sold

D.

Only short-term financial instruments and short-term securities are traded

A dealer, seeking to refinance a money market short position in USD, could choose to:

A.

Sell EUR/USD or GBP/USD spot

B.

Deal Reverse Repos (Reverse Sale and Repurchase Agreements)

C.

Place USD in torn next

D.

Deal Repos (Sale and Repurchase Agreements)

Bank A has a large number of forward OTC trades with Bank B. What risks will be reduced by concluding a netting agreement?

A.

Market-price-risk and replacement risk

B.

Market-price-risk and delivery risk

C.

Replacement risk and delivery risk

D.

Replacement risk and basis risk

What criteria should reconciliation escalation be based on?

A.

It should be based on the days’ past settlement date, value and/or likely compensation

B.

It should be based on the BIC-address and country

C.

It should be based on bilateral limits

D.

It should be based on the relationships of the institutions involved

Which one of the following bonds uses variable rates?

A.

Bond warrants

B.

Reverse convertibles

C.

Zero coupons

D.

Mini-Max (collared) FRN

You receive a trade to process with counterparty settlement instructions that differ from those you hold on your standard settlement instruction file (SSI).

A.

You should make the payment in accordance with the SSI you are holding without referring to your dealer or contacting the counterparty

B.

You should make the payment in accordance with the trade instructions

C.

You should check the SSI with your dealer and contact the counterparty to seek his specific instructions

D.

You should not make the payment

Your dealer has sold USD 10,000,000.00 against JPY at a rate of 95.00. In settlement you would expect to:

A.

Receive JPY 105,263.16

B.

Pay JPY 950,000,000

C.

Receive JPY 950,000,000

D.

Pay JPY 105,263

If manual trade capture methods are used, when should deals be recorded in systems used for this purpose?

A.

The same day they are dealt

B.

Promptly

C.

Within 24 hours of execution

D.

Within an hour of execution

Today is Monday, 8 December. You sell a 9x12 FRA in EUR. When will the settlement amount be paid or received, assuming that there are no bank holidays?

A.

8 September

B.

10 September

C.

8 December

D.

10 December

The use of netting in foreign exchange dealings has increased because it reduces:

A.

The volume of confirmations that have to be sent to the counterparties

B.

Foreign exchange dealing limits and the currency risk exposure of the banks

C.

The potential foreign exchange trading losses incurred by banks

D.

Interbank payments, counterparty credit risk exposure, as well as the amount of capital allocated to foreign exchange activity

In the weekend newspapers you read that one of your FX counterparties has gone into liquidation. You have no netting or close-out agreements in place with this counterparty and remember that you have one forward deal outstanding. What is the main risk affecting your bank?

A.

The loss of the entire principal amount of the deal

B.

The “replacement risk”, also known as “replacement-cost risk”

C.

The loss of the negative mark-to-market value of the deal

D.

As the deal is in the future, there is no impact on P&L

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Total 386 questions
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