Question 1

What is the day count/annual basis convention for JPY money market deposits?

Accepted Answer

A)  ACT/365 
B)  ACT/360 
C)  ACT/ACT 
D)  30E/360 
A)  ACT/365 
B)  ACT/360 
C)  ACT/ACT 
D)  30E/360

Question 2

Which of the following statements is false? The repo legal agreement between the two parties concerned should:

Accepted Answer

A)  enable the parties to comply with any capital adequacy requirements 
B)  provide for the absolute transfer of title to securities 
C)  provide for the calculation of initial consideration of the repo transaction 
D)  detail the course of action in the case of defaults, for example the rights and obligations of the counterparties and the full set-off of claims between the parties 
A)  enable the parties to comply with any capital adequacy requirements 
B)  provide for the absolute transfer of title to securities 
C)  provide for the calculation of initial consideration of the repo transaction 
D)  detail the course of action in the case of defaults, for example the rights and obligations of the counterparties and the full set-off of claims between the parties

Question 3

Which type of repo is the least risky for the buyer?

Accepted Answer

A)  Delivery repo 
B)  HlC repo 
C)  Tri-party repo 
D)  There is no real difference 
A)  Delivery repo 
B)  HlC repo 
C)  Tri-party repo 
D)  There is no real difference

Question 4

When dealing with a fund manager, who will allocate shares in a transaction to his unknown clients after the transaction has been executed with you, you should:

Accepted Answer

A)  Agree in writing with the fund manager that the allocation will be confirmed as soon as practicable after the transaction is executed. 
B)  Insist on the allocation being made and confirmed before the transaction is executed. 
C)  Agree in writing with the fund manager that he will guarantee the transaction until the allocation is confirmed. 
D)  Any of the above. 
A)  Agree in writing with the fund manager that the allocation will be confirmed as soon as practicable after the transaction is executed. 
B)  Insist on the allocation being made and confirmed before the transaction is executed. 
C)  Agree in writing with the fund manager that he will guarantee the transaction until the allocation is confirmed. 
D)  Any of the above.

Question 5

If you are trading spot on an ATS (Automated Trading System) and see a price for EUR/USD of 1.3050-53. If you hit the button marked "YOURS", what have you done?

Accepted Answer

A)  Bought EUR at 1.3053 
B)  Bought USD at 1.3053 
C)  Sold EUR at 1.3050 
D)  Sold USDatl.3050 
A)  Bought EUR at 1.3053 
B)  Bought USD at 1.3053 
C)  Sold EUR at 1.3050 
D)  Sold USDatl.3050

Question 6

You are short of 6 December EURODOLLAR futures contracts at 99.50. Yesterday, the closing price was 99.35. Today's closing price is 99.105. What variation margin will be due?

Accepted Answer

A)  You will have to pay USD 5,925.00 
B)  You will receive USD 5,925.00 
C)  You will have to pay USD 3,675.00 
D)  You will receive USD 3,675.00 
A)  You will have to pay USD 5,925.00 
B)  You will receive USD 5,925.00 
C)  You will have to pay USD 3,675.00 
D)  You will receive USD 3,675.00

Question 7

Which of following terms is not used as an expression for dates other than regular dates/periods?

Accepted Answer

A)  cock dates 
B)  broken dates 
C)  odd dates 
D)  weird dates 
A)  cock dates 
B)  broken dates 
C)  odd dates 
D)  weird dates

Question 8

If GSP/USD is quoted to you at 1.61 20-30, how much GSP would you receive if you sold USD 2000,000?

Accepted Answer

A)  1,239,925.60 
B)  1,237,873.80 
C)  1,240,694.79 
D)  1,242,720.50 
A)  1,239,925.60 
B)  1,237,873.80 
C)  1,240,694.79 
D)  1,242,720.50

Question 9

Which of the following statements with respect to trading and broking ethics through the use of technology is the correct quote from the Model Code?

Accepted Answer

A)  Deliberate attempts at gaming and abuse using the flashing of orders without the intent to deal should be classified as proprietary trades. 
B)  Management should ensure that the complete e-trading process, from pricing to risk impact through to settlement, conforms to recognized standards and market conventions. 
C)  All bid-offers presented to electronic platforms should remain in the Matching System for no more than the minimum period of time defined within their respective Minimum Quote Life (MQL) rules. 
D)  Trades which occur at off-market rates, by agreement between the two counterparts and as soon as practically possible, should stand and any profit be equitably divided between them. 
A)  Deliberate attempts at gaming and abuse using the flashing of orders without the intent to deal should be classified as proprietary trades. 
B)  Management should ensure that the complete e-trading process, from pricing to risk impact through to settlement, conforms to recognized standards and market conventions. 
C)  All bid-offers presented to electronic platforms should remain in the Matching System for no more than the minimum period of time defined within their respective Minimum Quote Life (MQL) rules. 
D)  Trades which occur at off-market rates, by agreement between the two counterparts and as soon as practically possible, should stand and any profit be equitably divided between them.

Question 10

The seller of a EUR/RUB NDF could be:

Accepted Answer

A)  a potential buyer of EUR against RUB 
B)  speculating on an appreciation of the Russian Rouble 
C)  expecting rising EUR/RUB exchange rates 
D)  a seller of Russian Rouble 
A)  a potential buyer of EUR against RUB 
B)  speculating on an appreciation of the Russian Rouble 
C)  expecting rising EUR/RUB exchange rates 
D)  a seller of Russian Rouble

Question 11

A sold JUN 3-month STIR-future should be reported in the gap report as of 22 May:

Accepted Answer

A)  as a given deposit with a term of one month and a taken deposit with a term of four months 
B)  as a taken deposit with a term of one month 
C)  as a taken deposit with a term of one month and a given deposit with a term of four months 
D)  as a given deposit with a term of four months 
A)  as a given deposit with a term of one month and a taken deposit with a term of four months 
B)  as a taken deposit with a term of one month 
C)  as a taken deposit with a term of one month and a given deposit with a term of four months 
D)  as a given deposit with a term of four months

Question 12

You have a USD loan that is priced at 3-month LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting: 1x3 USD FRA. 1.95-98% 1x4 USD FRA. 2.07-10% 1x6 USD FRA 2.25-28% To hedge the next LIBOR fixing, you should:

Accepted Answer

A)  Sell a 1x3 FRA at 1.95% 
B)  Buy a 1x3 FRA at 1.98% 
C)  Buy a 1x4 FRA at 2.10% 
D)  Sell a 1x4 FRA at 2.10% 
A)  Sell a 1x3 FRA at 1.95% 
B)  Buy a 1x3 FRA at 1.98% 
C)  Buy a 1x4 FRA at 2.10% 
D)  Sell a 1x4 FRA at 2.10%

Question 13

Whose compliance rules, regulations and best practices should be followed in FX electronic trading?

Accepted Answer

A)  solely those of the electronic trading platforms vendors 
B)  exclusively ACI's Model Code Best Practices 
C)  ACI's Model Code Best Practices and ICMA's Market Practice & Regulatory Policy 
D)  the electronic trading platforms vendors' and the ACIs Model Code Best Practices guidelines 
A)  solely those of the electronic trading platforms vendors 
B)  exclusively ACI's Model Code Best Practices 
C)  ACI's Model Code Best Practices and ICMA's Market Practice & Regulatory Policy 
D)  the electronic trading platforms vendors' and the ACIs Model Code Best Practices guidelines

Question 14

Payment and settlement instructions should be passed:

Accepted Answer

A)  As quickly as possible. 
B)  Within 24 hours of the transaction. 
C)  Setore 10:00 am on the value date. 
D)  Betore close of business on the transaction date. 
A)  As quickly as possible. 
B)  Within 24 hours of the transaction. 
C)  Setore 10:00 am on the value date. 
D)  Betore close of business on the transaction date.

Question 15

You are quoted the following rates: Spot GBP/CHF       1.4535-45 3M GBP/CHF swap     22/19 At what rate can you sell GBP against CHF outright 3-month?

Accepted Answer

A)  1.4523 
B)  1.4526 
C)  1.4513 
D)  1.4516 
A)  1.4523 
B)  1.4526 
C)  1.4513 
D)  1.4516

Question 16

Which of the following currencies is quoted on an ACT/365 basis for the calculation of interest on interbank deposits in London?

Accepted Answer

A)  EUR 
B)  JPY 
C)  HKD 
D)  AUD 
A)  EUR 
B)  JPY 
C)  HKD 
D)  AUD

Question 17

By what means should a financial institution preferably submit SSI changes and notifications to its clients?

Accepted Answer

A)  e-mail 
B)  fax or letter 
C)  MTn99 SWIFT message 
D)  MT670/671 SWIFT message 
A)  e-mail 
B)  fax or letter 
C)  MTn99 SWIFT message 
D)  MT670/671 SWIFT message

Question 18

Assume the following scenario: Bank A bids for EUR 5,000,000.00 at 1.3592. Bank B offers EUR 10,000,000.00 at 1.3597. Broker XYZ quotes to the market EUR/USD 1.3592/97. Bank C takes the offer at 1.3597. What information is the broker obliged to reveal?

Accepted Answer

A)  the name of Bank A and Bank B 
B)  the names of Bank B and Bank C 
C)  the amount that was bid but not the name of Bank A 
D)  the amount taken by Bank C as well as the amount that was bid 
A)  the name of Bank A and Bank B 
B)  the names of Bank B and Bank C 
C)  the amount that was bid but not the name of Bank A 
D)  the amount taken by Bank C as well as the amount that was bid

Question 19

To establish and maintain a short position in deliverable securities, you must:

Accepted Answer

A)  Sell 
B)  Sell and subsequently buy back 
C)  Sell and borrow 
D)  Sell, borrow and buy back simultaneously 
A)  Sell 
B)  Sell and subsequently buy back 
C)  Sell and borrow 
D)  Sell, borrow and buy back simultaneously

Question 20

Which of the following both provide credit enhancement to a true-sale securitization?

Accepted Answer

A)  reserve account and third-party insurance 
B)  subordinated tranches and creditworthiness of the originator 
C)  creditworthiness of the originator and third-party insurance 
D)  reserve account and interest rate hedging 
A)  reserve account and third-party insurance 
B)  subordinated tranches and creditworthiness of the originator 
C)  creditworthiness of the originator and third-party insurance 
D)  reserve account and interest rate hedging

What is the day count/annual basis convention for JPY money market deposits?

Which of the following statements is false? The repo legal agreement between the two parties concerned should:

Which type of repo is the least risky for the buyer?

When dealing with a fund manager, who will allocate shares in a transaction to his unknown clients after the transaction has been executed with you, you should:

If you are trading spot on an ATS (Automated Trading System) and see a price for EUR/USD of 1.3050-53. If you hit the button marked "YOURS", what have you done?

You are short of 6 December EURODOLLAR futures contracts at 99.50. Yesterday, the closing price was 99.35. Today's closing price is 99.105. What variation margin will be due?

Which of following terms is not used as an expression for dates other than regular dates/periods?

If GSP/USD is quoted to you at 1.61 20-30, how much GSP would you receive if you sold USD 2000,000?

Which of the following statements with respect to trading and broking ethics through the use of technology is the correct quote from the Model Code?

The seller of a EUR/RUB NDF could be:

A sold JUN 3-month STIR-future should be reported in the gap report as of 22 May:

You have a USD loan that is priced at 3-month LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting: 1x3 USD FRA. 1.95-98% 1x4 USD FRA. 2.07-10% 1x6 USD FRA 2.25-28% To hedge the next LIBOR fixing, you should:

Whose compliance rules, regulations and best practices should be followed in FX electronic trading?

Payment and settlement instructions should be passed:

You are quoted the following rates: Spot GBP/CHF 1.4535-45 3M GBP/CHF swap 22/19 At what rate can you sell GBP against CHF outright 3-month?

Which of the following currencies is quoted on an ACT/365 basis for the calculation of interest on interbank deposits in London?

By what means should a financial institution preferably submit SSI changes and notifications to its clients?

Assume the following scenario: Bank A bids for EUR 5,000,000.00 at 1.3592. Bank B offers EUR 10,000,000.00 at 1.3597. Broker XYZ quotes to the market EUR/USD 1.3592/97. Bank C takes the offer at 1.3597. What information is the broker obliged to reveal?

To establish and maintain a short position in deliverable securities, you must:

Which of the following both provide credit enhancement to a true-sale securitization?

ACI Dealing Certificate-Part A

Filters

Exam 2: ACI Dealing Certificate-Part B

What is the day count/annual basis convention for JPY money market deposits?

Which of the following statements is false? The repo legal agreement between the two parties concerned should:

Which type of repo is the least risky for the buyer?

When dealing with a fund manager, who will allocate shares in a transaction to his unknown clients after the transaction has been executed with you, you should:

If you are trading spot on an ATS (Automated Trading System) and see a price for EUR/USD of 1.3050-53. If you hit the button marked "YOURS", what have you done?

You are short of 6 December EURODOLLAR futures contracts at 99.50. Yesterday, the closing price was 99.35. Today's closing price is 99.105. What variation margin will be due?

Which of following terms is not used as an expression for dates other than regular dates/periods?

If GSP/USD is quoted to you at 1.61 20-30, how much GSP would you receive if you sold USD 2000,000?

Which of the following statements with respect to trading and broking ethics through the use of technology is the correct quote from the Model Code?

The seller of a EUR/RUB NDF could be:

A sold JUN 3-month STIR-future should be reported in the gap report as of 22 May:

You have a USD loan that is priced at 3-month LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting: 1x3 USD FRA. 1.95-98% 1x4 USD FRA. 2.07-10% 1x6 USD FRA 2.25-28% To hedge the next LIBOR fixing, you should:

Whose compliance rules, regulations and best practices should be followed in FX electronic trading?

Payment and settlement instructions should be passed:

You are quoted the following rates: Spot GBP/CHF 1.4535-45 3M GBP/CHF swap 22/19 At what rate can you sell GBP against CHF outright 3-month?

Which of the following currencies is quoted on an ACT/365 basis for the calculation of interest on interbank deposits in London?

By what means should a financial institution preferably submit SSI changes and notifications to its clients?

Assume the following scenario: Bank A bids for EUR 5,000,000.00 at 1.3592. Bank B offers EUR 10,000,000.00 at 1.3597. Broker XYZ quotes to the market EUR/USD 1.3592/97. Bank C takes the offer at 1.3597. What information is the broker obliged to reveal?

To establish and maintain a short position in deliverable securities, you must:

Which of the following both provide credit enhancement to a true-sale securitization?

ACI Dealing Certificate-Part A

Filters