Pass the ACI ACI-Financial 3I0-012 Questions and answers with CertsForce

Currency risk

Interest rate risk

Operational risk

Credit risk

Eurocertificate of deposit

US Treasury bill

CP

All of the above

Dealers may seek a compensation payment in favor of the bank or an adjustment to brokerage bills from the broker for switching names.

If requested by a broker to clear a transaction through name switching, a dealer must ensure that such activities have the prior approval of senior management.

The practice of name switching/substitution is neither acceptable nor desirable.

Name switching/substitution transactions should be executed as promptly as possible not considering credit limits and policy guidelines.

USD 124,641,442.43

USD 124,636,476.94

USD 124,635,416.67

USD 123,915,737.30

0.8500

0.8506

0.8512

0.8505

Falls and rises with the price of the underlying commodity, but is always positive

Rises if the price of the underlying commodity falls and vice versa

Depends solely on the volatility of the price of the underlying commodity

Becomes negative if the market price of the underlying commodity falls below the strike price of the option

Higher interest rates

Lower interest rates

Steepening yield curve

Parallel shift downwards in the yield curve

To reduce the number and size of payments and transfers

To reduce exposure to credit risk

To reduce the size of the balance sheet

All of the above

On an special number known only to the chief dealer.

On a number located in the office of the internal auditor.

Secured so that reported transactions cannot be erased without senior management approval.

Secured by recordings that are stored for a suitable period.

The original rate of the transaction

The original rate of the transaction adjusted by the relevant forward points

The affected parties should agree to adjust the exchange rate according to the prevailing relevant forward mid swap points at the time the bank holiday is announced

The rate is open to negotiation by the two parties

an unavailability of a credit limit for the counterparty

a qualification stating that a transaction needs to be reconfirmed

the unacceptability of the counterparty’s name

a qualification stating that the rate quoted may no longer be valid and requires confirmation before any trades can be agreed

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

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

There is a positive EUR yield curie

There is not enough information to decide

Technically impossible on electronic platforms

Not an uncommon practice and something which professional dealers should be able to guard against.

Not good practice.

A criminal offence.

the monetary authority in the country where the broker is located

the banking association in the country where the bank is located

the Committee for Professionalism of the ACI

the local foreign exchange market committee

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

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

You cannot do this.

The Model Code does not make recommendations on this subject.