ACI 3I0-013 Exam Questions Free Practice Test

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Viewing questions 61-70 out of questions

Questions # 61:

The yield of a 1 month FRN in EUR depends on

Options:

The level of short-term EUR interest rates

The level of medium-term EUR interest rates

The slope of EUR yield curve

The level of long-term EUR interest rates

Expert Solution

Questions # 62:

Experience has shown that recourse to taped telephone conversations proves invaluable to the speedy resolution of disputes. Therefore, the Model Code recommends:

Options:

That all telephone conversations (internal and external) be taped without informing counterparties

That only conversations undertaken by dealers and brokers should be recorded

That all conversations undertaken by dealers and brokers should be recorded, together with back office telephone lines used by those responsible for confirming deals or passing payments to other institutions

That only telephone conversations between dealers and brokers be recorded

Expert Solution

Questions # 63:

The process used to disguise the trail of laundered funds within the financial system is known as:

Options:

Streamlining

Layering

Reinvesting

Channeling

Expert Solution

Questions # 64:

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

Options:

Market-price-risk and replacement risk

Market-price-risk and delivery risk

Replacement risk and delivery risk

Replacement risk and basis risk

Expert Solution

Questions # 65:

What are the factors determining if a FX transaction can be settled through the CLS Bank?

Options:

Currency pair, price

Currency pair, counterparty, time

Currency pair, price, counterparty

Counterparty, price

Expert Solution

Questions # 66:

Under normal circumstances, which of the following is a non-negotiable instrument?

Options:

A Medium Term Note

A Banker’s Acceptance

A Money Market Deposit

A Treasury Bill

Expert Solution

Questions # 67:

What is a loro or vostro bank account?

Options:

An account that you hold with another commercial bank

An account that another bank holds with you

An account that you hold with the Bank of England

Your suspense account at the European Central Bank

Expert Solution

Questions # 68:

The CLS-Bank (Continuous Linked Settlement) is one of the ways through which FX transactions can be settled. Why was this bank founded?

Options:

To simplify domestic payments

To handle interbank liquidity more efficiently

To accelerate cross-border payments

To minimize settlement risks

Expert Solution

Questions # 69:

A 3-month Eurodollar futures price of 99.25 implies a forward rate of:

Options:

0.9925%

0.75%

0.0075%

0.25%

Expert Solution

Questions # 70:

Which country does the BIC-address BKENGB33CUS belong to?

Options:

The United Kingdom

The United States of America

Kenya

Gambia

Expert Solution

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