ACI 3I0-013 Exam Questions Free Practice Test

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Questions # 41:

A message received and accepted by SWIFT will be acknowledged with:

Options:

ACK

MAK

NAK

Expert Solution

Questions # 42:

The prompt sending and checking of confirmations is considered a best practice when dealing in:

Options:

Amounts higher than USD 10,000,000.00 or the equivalent in other currencies

Amounts higher than USD 1,000,000.00 or the equivalent in other currencies

Any amount unless dealt via a broker

Any amount by any counter party

Expert Solution

Questions # 43:

EURIBOR is a:

Options:

Daily fixing of EUR interest rates within the EMU zone

Daily fixing of EUR interest rates in London

A rate used for the settlement of USD FRAs between European counterparties

The official successor to LIBOR rates

Expert Solution

Questions # 44:

What is the function of the cash positions keeper?

Options:

He/she acts as a running control on the balance of a nostro, alerting the treasury dealer when funds are running too low or too high for a particular value day measured by agreed upon internal parameters

He/she assists the dealer in deciding which currency to invest in

He/she informs back office staff about which kind of confirmations are to be used

He/she acts as a running control on the balance of an internal account, alerting the treasury dealer when fees are running too low or high for a particular value day

Expert Solution

Questions # 45:

A middle or back office clerk receives an FX ticket in which the counterparty is not clearly identified. What should he/she do?

Options:

Keep the ticket in “stand-by mode” until a matching confirmation is received

Immediately refer the ticket to the compliance officer

Refer the ticket to the FX dealer for further details

Refer the ticket to the nostro account manager for further instructions

Expert Solution

Questions # 46:

Which of the following statements best describes collateral?

Options:

Liquid assets pledged by one or both counterparties to the other to reduce credit risk

Deposits placed by a commercial bank with a central bank to fulfill reserve asset ratios

Any deposit placed by an institution with another institution of a lower credit rating

Any cross border payment of currency

Expert Solution

Questions # 47:

Which one of the following excerpts completes this statement of a best market practice? “Any exception to the confirmation process should be resolved?

Options:

No later than the value date

Within 2 days

Within 1 week

On the day it is discovered

Expert Solution

Questions # 48:

What payment system has to be used for all payments involving the Eurosystem?

Options:

SWIFT

CHAPS

Euro Link System (ELS)

TARGET2

Expert Solution

Questions # 49:

In the absence of his normal dealer contact, a counterparty calls the back office and asks the clerk for his opinion about how long his money should be placed on deposit. What action should the back office clerk take?

Options:

He should give his opinion.

He should give his opinion and tell the counterparty that he is not qualified to do so.

He should tell the counterparty that he is not qualified to give an opinion and refer the counterparty to another dealer.

He should give his opinion and refer the counterparty to another dealer.

Expert Solution

Questions # 50:

Which interest rates are used to calculate the exchange rate of an outright transaction value tomorrow (over tom)?

Options:

The overnight interest rates of both currencies

The spot next interest rates of both currencies

The one week interest rates of both currencies

The torn next interest rates of both currencies

Expert Solution

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