Question 1

Confirmations must be sent out:

Accepted Answer

A)  Immediately after the deal is done. 
B)  As quickly as possible after the deal is done. 
C)  By electronic media only, e.g. fax, telex. 
D)  Not later than the value date of the first leg of 
A)  Immediately after the deal is done. 
B)  As quickly as possible after the deal is done. 
C)  By electronic media only, e.g. fax, telex. 
D)  Not later than the value date of the first leg of

Question 2

Using the following rates: spot GBP/CHF 2.3785-15 spot CHF/SEK 5.5975-85 3M GBP/SEK swap 725/690 What is the price for 3-month outright GBP/SEK?

Accepted Answer

A)  13.3860-13.4020 
B)  13.2435-13.2615 
C)  13.2412-13.2638 
D)  13.2445-13.2605 
A)  13.3860-13.4020 
B)  13.2435-13.2615 
C)  13.2412-13.2638 
D)  13.2445-13.2605

Question 3

In GBP/CHF, you are quoted the following prices by four different banks. You are a buyer of CHF. Which is the best quote for you?

Accepted Answer

A)  2.3840 
B)  2.3843 
C)  2.3837 
D)  2.3835 
A)  2.3840 
B)  2.3843 
C)  2.3837 
D)  2.3835

Question 4

Today is Monday, 8th December. You sell a 9x12 FRA for value Thursday, 10th September next year. On what date is the settlement amount due to be paid or received (assuming that there are no holidays)?

Accepted Answer

A)  8th September next year 
B)  10th September next year 
C)  8th December next year 
D)  10th December next year 
A)  8th September next year 
B)  10th September next year 
C)  8th December next year 
D)  10th December next year

Question 5

Which of the following statements is correct?

Accepted Answer

A)  An adjusted settlement amount is paid at the end o 
B)  An unadjusted settlement amount is paid at the end 
C)  An adjusted settlement amount is paid at the start 
D)  An unadjusted settlement amount is paid at the sta 
A)  An adjusted settlement amount is paid at the end o 
B)  An unadjusted settlement amount is paid at the end 
C)  An adjusted settlement amount is paid at the start 
D)  An unadjusted settlement amount is paid at the sta

Question 6

The premium on an option contract is:

Accepted Answer

A)  The price of the underlying commodity at the time 
B)  The price at which the transaction on the underlyi 
C)  The price the buyer of the option pays to the sell 
D)  The price at which the two counterparties can clos 
A)  The price of the underlying commodity at the time 
B)  The price at which the transaction on the underlyi 
C)  The price the buyer of the option pays to the sell 
D)  The price at which the two counterparties can clos

Question 7

What is the purpose of an initial margin on a futures exchange?

Accepted Answer

A)  To cover losses incurred between variation margin 
B)  To exclude retail investors 
C)  To pay reserve requirements 
D)  To cover fees due to the clearing house 
A)  To cover losses incurred between variation margin 
B)  To exclude retail investors 
C)  To pay reserve requirements 
D)  To cover fees due to the clearing house

Question 8

How is an outright forward FX transaction quoted?

Accepted Answer

A)  Forward points 
B)  Full forward exchange rate 
C)  Depends on whether it is interbank or to a custome 
D)  Depends on the currency pair and sometimes the ter 
A)  Forward points 
B)  Full forward exchange rate 
C)  Depends on whether it is interbank or to a custome 
D)  Depends on the currency pair and sometimes the ter

Question 9

If a 6-month AUD/NZD swap is quoted 173/165, which of the following statements would you consider to be correct?

Accepted Answer

A)  6-month AUD rates are higher than 6-month NZD rate 
B)  6-month AUD rates are lower than 6-month NZD rates 
C)  Spot AUD/NZD will be higher by approximately 170 p 
D)  The AUD yield curve is positive, whilst the NZD cu 
A)  6-month AUD rates are higher than 6-month NZD rate 
B)  6-month AUD rates are lower than 6-month NZD rates 
C)  Spot AUD/NZD will be higher by approximately 170 p 
D)  The AUD yield curve is positive, whilst the NZD cu

Question 10

A person who appears to be a technician asks for your help in accessing treasury systems as he has forgotten his list of access codes. The Model Code recommends:

Accepted Answer

A)  You should provide all reasonable assistance. 
B)  You should report the request immediately to senio 
C)  Do not get involved; you may be at risk. 
D)  There is no recommendation in the Model Code. 
A)  You should provide all reasonable assistance. 
B)  You should report the request immediately to senio 
C)  Do not get involved; you may be at risk. 
D)  There is no recommendation in the Model Code.

Question 11

Your are quoted the following rates: spot CHF/JPY 80.12-22 3M CHF/JPY 25.5/22.5 At what rate can you buy 3-month outright JPY against CHF?

Accepted Answer

A)  79.995 
B)  79.965 
C)  79.895 
D)  79.865 
A)  79.995 
B)  79.965 
C)  79.895 
D)  79.865

Question 12

If spot AUD/USD is quoted to you as 0.7406-09. How many AUD would you receive in exchange for USD 5,000,000 if you dealt on the price?

Accepted Answer

A)  3,704,500 
B)  6,748,549 
C)  3,703,000 
D)  6,751,283 
A)  3,704,500 
B)  6,748,549 
C)  3,703,000 
D)  6,751,283

Question 13

Which of the following is always a secured instrument?

Accepted Answer

A)  ECP 
B)  Repo 
C)  Interbank deposit 
D)  CD 
A)  ECP 
B)  Repo 
C)  Interbank deposit 
D)  CD

Question 14

The use of standard settlement instructions (SSI's) is strongly encouraged because:

Accepted Answer

A)  It reduces operational risk. 
B)  It splits differences arising from failed settleme 
C)  It removes the need for sending out SWIFT payment 
D)  All of the above. 
A)  It reduces operational risk. 
B)  It splits differences arising from failed settleme 
C)  It removes the need for sending out SWIFT payment 
D)  All of the above.

Question 15

Voice-brokers in spot FX act as:

Accepted Answer

A)  Proprietary traders 
B)  Market-makers 
C)  Matched principals 
D)  Agents 
A)  Proprietary traders 
B)  Market-makers 
C)  Matched principals 
D)  Agents

Question 16

Where the Committee for Professionalism of the ACI has been notified of a breach of the letter or spirit of the Model Code, it

Accepted Answer

A)  Will examine the complaint. 
B)  May consult with the local ACI. 
C)  Will bring the matter to the attention of the loca 
D)  None of the above. 
A)  Will examine the complaint. 
B)  May consult with the local ACI. 
C)  Will bring the matter to the attention of the loca 
D)  None of the above.

Question 17

You have quoted a Swiss customer spot USD/CHF as 1.3710-15, but he asks you to quote it as CHF/USD. What do you quote

Accepted Answer

A)  0.7291-94 
B)  0.7294-91 
C)  1.3710-15 
D)  None of these 
A)  0.7291-94 
B)  0.7294-91 
C)  1.3710-15 
D)  None of these

Question 18

You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10 million interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 4.95%. You expect 6-month LIBOR in 6 months to fix at 5.25%, in 12 months at 5.35% and in 18 months at 5.40%. What do you expect the net settlement amounts to be over the next 2 years? Assume 30-day months.

Accepted Answer

A)  pay 250, receive 1,250, receive 1,750, receive 2,0 
B)  receive 250, pay 1,250, pay 1,750, pay 2,000 
C)  pay 2,500, receive 12,500, receive 17,500, receive 
D)  receive 2,500, pay 12,500, pay 17,500, pay 20,000 
A)  pay 250, receive 1,250, receive 1,750, receive 2,0 
B)  receive 250, pay 1,250, pay 1,750, pay 2,000 
C)  pay 2,500, receive 12,500, receive 17,500, receive 
D)  receive 2,500, pay 12,500, pay 17,500, pay 20,000

Question 19

Where internet trading facilities are established by a bank for a client, the conditions and controls should be stated in a rulebook produced by:

Accepted Answer

A)  The bank. 
B)  The local bankers association. 
C)  The local regulator. 
D)  Negotiation between the bank and client. 
A)  The bank. 
B)  The local bankers association. 
C)  The local regulator. 
D)  Negotiation between the bank and client.

Question 20

If you funded a fixed-income investment portfolio with short-term deposits, how would you hedge your interest rate exposure with interest rate swaps?

Accepted Answer

A)  Pay fixed and receive floating through swaps for t 
B)  Pay floating and receive fixed through swaps for t 
C)  You cannot : the maturity of the swaps would be lo 
D)  You should not: there would be too much basis risk 
A)  Pay fixed and receive floating through swaps for t 
B)  Pay floating and receive fixed through swaps for t 
C)  You cannot : the maturity of the swaps would be lo 
D)  You should not: there would be too much basis risk

Confirmations must be sent out:

Using the following rates: spot GBP/CHF 2.3785-15 spot CHF/SEK 5.5975-85 3M GBP/SEK swap 725/690 What is the price for 3-month outright GBP/SEK?

In GBP/CHF, you are quoted the following prices by four different banks. You are a buyer of CHF. Which is the best quote for you?

Today is Monday, 8th December. You sell a 9x12 FRA for value Thursday, 10th September next year. On what date is the settlement amount due to be paid or received (assuming that there are no holidays)?

Which of the following statements is correct?

The premium on an option contract is:

What is the purpose of an initial margin on a futures exchange?

How is an outright forward FX transaction quoted?

If a 6-month AUD/NZD swap is quoted 173/165, which of the following statements would you consider to be correct?

A person who appears to be a technician asks for your help in accessing treasury systems as he has forgotten his list of access codes. The Model Code recommends:

Your are quoted the following rates: spot CHF/JPY 80.12-22 3M CHF/JPY 25.5/22.5 At what rate can you buy 3-month outright JPY against CHF?

If spot AUD/USD is quoted to you as 0.7406-09. How many AUD would you receive in exchange for USD 5,000,000 if you dealt on the price?

Which of the following is always a secured instrument?

The use of standard settlement instructions (SSI's) is strongly encouraged because:

Voice-brokers in spot FX act as:

Where the Committee for Professionalism of the ACI has been notified of a breach of the letter or spirit of the Model Code, it

You have quoted a Swiss customer spot USD/CHF as 1.3710-15, but he asks you to quote it as CHF/USD. What do you quote

Where internet trading facilities are established by a bank for a client, the conditions and controls should be stated in a rulebook produced by:

If you funded a fixed-income investment portfolio with short-term deposits, how would you hedge your interest rate exposure with interest rate swaps?

ACI Dealing Certificate-Part B

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Exam 1: ACI Dealing Certificate-Part A

Confirmations must be sent out:

Using the following rates: spot GBP/CHF 2.3785-15 spot CHF/SEK 5.5975-85 3M GBP/SEK swap 725/690 What is the price for 3-month outright GBP/SEK?

In GBP/CHF, you are quoted the following prices by four different banks. You are a buyer of CHF. Which is the best quote for you?

Today is Monday, 8th December. You sell a 9x12 FRA for value Thursday, 10th September next year. On what date is the settlement amount due to be paid or received (assuming that there are no holidays)?

Which of the following statements is correct?

The premium on an option contract is:

What is the purpose of an initial margin on a futures exchange?

How is an outright forward FX transaction quoted?

If a 6-month AUD/NZD swap is quoted 173/165, which of the following statements would you consider to be correct?

A person who appears to be a technician asks for your help in accessing treasury systems as he has forgotten his list of access codes. The Model Code recommends:

Your are quoted the following rates: spot CHF/JPY 80.12-22 3M CHF/JPY 25.5/22.5 At what rate can you buy 3-month outright JPY against CHF?

If spot AUD/USD is quoted to you as 0.7406-09. How many AUD would you receive in exchange for USD 5,000,000 if you dealt on the price?

Which of the following is always a secured instrument?

The use of standard settlement instructions (SSI's) is strongly encouraged because:

Voice-brokers in spot FX act as:

Where the Committee for Professionalism of the ACI has been notified of a breach of the letter or spirit of the Model Code, it

You have quoted a Swiss customer spot USD/CHF as 1.3710-15, but he asks you to quote it as CHF/USD. What do you quote

Where internet trading facilities are established by a bank for a client, the conditions and controls should be stated in a rulebook produced by:

If you funded a fixed-income investment portfolio with short-term deposits, how would you hedge your interest rate exposure with interest rate swaps?

ACI Dealing Certificate-Part B

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