3I0-012 Exam Questions

What would be the strategy for a bank if it is unable to speculate on interest rates and/or unable to absorb market risk?

Net funding requirements in liquidity management are determined by means of:

Which one of the following statements is incorrect under Basel III?

Which one of the following statements regarding the variance-covariance method for calculating value-at-risk is true?

Under new Basel rules, what is the meaning of CVA?

Which of the following does not represent an operational risk as defined by Basel rules?

You are a sales person in a bank and are about to sell a structured note to a non-professional customer. Before finalizing the transaction you remember to double-check the customer...

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

The Model Code's correct recommendation regarding electronic trading states:

When can a broker consider a deal to be done?

A dealer in the spot foreign exchange market has to assume that a price given to a voice broker is only valid:

As to the Charter of ACI - The Financial Markets Association, what do members not pledge?

Which of the following statements reflects the position of the Model Code on gambling or betting amongst market participants?

The popularity of FX-trading via Internet platforms has serious implications for the applicability of traditional rules such as "Know Your Customer". Which of the following are cor...

Where voicemail equipment is used for the reporting and recording of off-premises transactions, voice mail should be:

In a plain vanilla interest rate swap, the "fixed-rate payer":

All prices quoted by brokers should be taken to be:

What should a broker do if his quoted price is hit simultaneously by several dealers for a total amount greater than that for which the price concerned was valid?

Under the Model Code, if a broker shouts "done" or "mine" at the very moment a dealer shouts "off":

In order to be introduced in a controlled manner, which areas should be involved before a new product or business strategy is launched?

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

A negative yield curve is one in which:

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

What rates should a panel bank contribute to the EURIBOR fixings?

EURIBOR is the:

A USD deposit traded in London between two German banks is cleared:

If the issuer of the collateral used in a repo defaults during the term of the transaction, who suffers the loss?

What is the Purchase Price of a repo?

A CD with a face value of USD 250,000,000.00 was issued at par with a coupon of 5% for 91 days. You buy it in the secondary market when it has 30 days remaining to maturity and is...

You quote spot EUR/USD at 1.3023-26 in 5 to another bank. He says, "Take 5, could do 8". How much are you obliged to do?

What is the value date of a 1-month outright forward FX transaction dealt today, if today's spot date is Monday, 30th January? Assume there are no bank holidays and that the year i...

When would an exporter commonly use an NDF?

What is the value date of a 6-month outright forward FX transaction dealt today, if today's spot date is Monday, 30th June? Assume there are no bank holidays.

How many Yen would you pay to buy 1 ounce of gold if you were quoted the following? XAU/USD 1575.25-75 USD/JPY 96.55-60

If GBP/USD is 1.5350-53 and USD/JPY is 97.50-53, what is GBP/JPY?

The 180-day CAD/CHF rate is bid 62 and the 90-day CAD/CHF rate is bid 29. What is the bid rate for 120 days, assuming straight-line interpolation?

You are quoted the following rates: Spot cable 1.5340-43 0/N cable swap 0.14/0.11 T/N cable swap 0.16/0.13 S/N cable swap 0.43/0.37 At what rate can you buy cable for value tomorro...

The market is quoting: 1-month (30-day) GBP 0.47% 7-month (213-day) GBP 0.74% What is the 1x7 rate in GBP?

Today is the fixing date for a 6x9 FRA that you sold at 2.55%. BBA LIBOR fixes at 2.7175%. Which of the following is true?

If you lend for 3 months and borrow for 6 months, you may be said to:

What is the purpose of a short straddle option strategy?

The delta of an `at-the-money' long put option is:

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

Which of the following situations would be most likely to result in a negative mark-to-market for a bank borrowing short term and lending long term?

The primary issue for insuring prudent liquidity management in accord with the guidance provided by the Basel Committee (Basel II I Basel III) is:

Which of the following statements about Credit Default Swaps (CDS) is correct?

Which of the following is not the responsibility of the asset and liability committee (ALCO)?

Which of the following is part of the typical scope of Asset Liability Management (ALM)?

All other things being equal, if a bank borrows short and lends long what is the effect on the liquidity risk of the bank?

A transaction that entails market price risks may be entered into in the absence of a market price risk limit...