ACI DEALING CERTIFICATE - 3I0-008 Exam Practice Test

A. Banks and brokers should record, by tapes or other such means, conversations between dealing counterparties.

B. The storage of recorded tapes should be strictly managed to prevent their contents from being tampered with.

C. On completion of recordings, tapes should be kept for a period sufficient to enable the details of any transaction contained therein to be confirmed.

D. There is no need to inform new counterparties and clients that conversations will be recorded.

A. Cannot say

B. Bought and sold 3-month EUR/USD through the swap

C. Sold and bought 3-month EUR/USD through the swap

D. Made the quote

A. The principal is obliged to take into account any information provided by a broker as they are bound by a professional relationship.

B. All of the above.

C. All principals have the responsibility for assessing the creditworthiness of their counterparties or potential counterparties whether dealing direct or through a broking firm.

D. It is the responsibility of the broking firm to conduct due diligence before transacting a deal.

A. 8th September next year

B. 8
th
December next year

C. 10th December next year

D. 10th September next year

A. A major terrorist attack on a financial centre.

B. The failure of SWIFT.

C. The imposition of capital controls.

D. Concerted central bank intervention.

A. +121

B. -119

C. +120

D. -116

A. The broker is not obligated to reveal the connection in the professional market.

B. The matter is covered in the Model Code.

C. The broker is not obligated to reveal the connection provided Chinese Walls are in place.

D. The broker should advise the other counterparty of the connection.

A. A short call option + long put option with the same strike prices

B. A long call option + short put option with the same strike prices

C. A short call option + short put option with the same strike prices

D. A long call option + long put option with the same strike prices

A. As quickly as possible after the deal is done.

B. Not later than the value date of the first leg of the transaction.

C. Immediately after the deal is done.

D. By electronic media only, e.g. fax, telex.

A. Banks should not ask brokers for details of third party transactions unless senior management has approved.

B. Banks should not ask brokers to disclose details of third party transactions unless they are between overseas principals.

C. Banks should not ask brokers to disclose transactions between third parties in any circumstances.

D. Banks should not ask brokers to disclose details of third party transactions unless these transactions are already settled.

A. 13.2412-13.2638

B. 13.2445-13.2605

C. 13.2435-13.2615

D. 13.3860-13.4020

A. To exclude retail investors

B. To pay reserve requirements

C. To cover fees due to the clearing house

D. To cover losses incurred between variation margin payments

A. The Euronext. LIFFE EURIBOR futures contract has a tick value (for one full basis point equivalent) of EUR25 and a face value of EUR 1,000,000

B. The CME eurodollar futures contract has a tick value (for one full basis point equivalent) of USD25 and a face value of USD 1,000,000

C. All of the above

D. The Euronext. LIFFE CHF futures contract has a tick value (for one full basis point equivalent) of CHF25 and a face value of CHF 1,000,000

A. Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.

B. Paying a 5-year euro deposit and receiving a rate of interest of 4.12% on an actual/360 basis.

C. Paying a fixed rate of 4.12% per annum on an actual/actual basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.

D. Taking a 5-year euro deposit and paying a rate of interest of 4.12% on an actual/360 basis.