3I0-012 Exam Questions

For a bank to count funds as regulatory capital:

In FX trading a "third party beneficiary" is best described as:

If manual trade capture methods are used, when should deals be recorded in systems used for this purpose?

Between which departments are clear and structured escalation procedures required for the management of incorrect funding balances?

A bank quotes a spot rate that is verifiably incorrect and deviates substantially from the prevailing market rate.

In foreign exchange markets, the first currency in a currency pair is:

Which of the following statements is an incorrect statement in respect of Model Code recommendations concerning electronic trading?

What are financial market professionals not explicitly required by the Model Code to clarify and agree to in writing?

When should confirmations be sent out?

In the unforeseen event that a particular maturity date is declared a public holiday, what is standard market practice for spot FX?

What should a dealer say to express his commitment to putting an additional bid or offer at a current bid or offer price already quoted by his broker?

If making a claim in respect of "use of funds", payments should be settled within how many days?

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

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 Model Code is clear on "position parking". What does it say?

Which of the following statements about Eurodollar deposits is correct?

A CD can usually only be issued by what type of institution?

If the value of the collateral in a repo has fallen during the term of the transaction, who suffers the loss?

Which of the following functions does a to-party repo agent not perform?

What is the ISO code for platinum?

If 6-month EUR/AUD is quoted at 129/132, which of the following statements is correct?

What criteria define a market-maker?

You are quoted the following market rates: Spot EUR/USD 1.3010 6M (181-day) EUR 0.30% 6M (181-day) USD 0.50% What is 6-month EUR/USD?

You quote your customer EUR/USD 1.3070-73, However they need the rate quoted in EUR per USD. What do you quote?

A customer sells a 3-month Euro Swiss Franc (EUROSWISS) futures contract. Which of the following risks could he be trying to hedge?

A bank wants to use STIR futures for establishing a macro hedge for the asset portfolio. Which of the following statements is correct?

Which of the following statements about hedge accounting is not correct?

Which of the following statements does not explain why banks accept some amount of interest rate risk?

Under Basel rules the risk weight for AM-rated claims on corporates in the standardized approach is:

A customer based in the UK exports automotive parts to the US. His main competitor is in France. What type of exposure to currency risk is posed by movements in EUR/USD?

If you took a short position in USD/JPY, how could the Fed "squeeze" you?

Under Basel III the Credit Value Adjustment will apply to:

With regard to operational risk awareness, which of the following best practices is incorrect?

In the deposit broker market, which one of the following is not a valid reason for the proposed borrower to decline the lenders name?

ACI's Committee for Professionalism will offer expert opinion in disputes between firms if:

The term "under reference" refers to:

When a stop-loss/profit order is taken, the rate specified in the order:

What is one of the responsibilities of the Middle Office according to the Model Code?

Name switching is:

Deals transacted directly or via a broker prior to 5:00 am Sydney time on Monday morning:

Which of the following cannot produce a capital gain?

What is the maximum maturity of a London CD?

What is the primary function of GC repo, particularly very short -term transactions?

Voice-brokers in spot FX are remunerated with:

You are quoted the following market rates: Spot AUD/USD 1.0380-85 0/N AUD/USD swap 2.42/2.35 TIN AUD/USD swap 0.82/0.79 S/N AUD/USD swap 0.80/0.77 Where can you buy AUD against USD...

You are quoted the following rates: Spot JPY/CHF 0.009520-25 6M JPY/CHF 10/7 At what rate can you buy 6-month outright CHF against JPY?

How can options be used to synthesize a short position in the underlying commodity?

A payer's 3-month USD LIBOR swap with a remaining term of five years must be reported as:

What is the principal risk identified by gap management reporting?

A Eurozone-based bank that is liability-sensitive to market interest rate changes might reduce interest rate risk by: