3I0-012 Exam Questions

The risk associated with a stock or a bond that is not correlated with events in the market is known as:

What is the correct interpretation of a EUR 5,000,000.00 one-week VaR figure with a 99% confidence level?

Which one of the formulae below is correct?

Which of the following statements about requirements for limit setting is correct?

You are the buyer of protection in a credit default swap. All other things being equal your counterparty credit risk is increasing if:

Which of the following statements is correct?

In the event that standard settlement instructions are provided by a third party, full authentication and authorization of those SSIs should be independently performed by?

Which of the following statements about operational risk awareness is correct?

What is the expression used to describe a genuine error (wrong amount, wrong side, wrong rate) made by a dealer in the execution of an order on an electronic platform?

The Model Code recommends that standard terms and conditions be used in legal documents. Which one of the following statements is correct?

For which one of the following disputes is the Chairman and members of the ACI's CFP ready to assist through the ACI's Expert Determination?

Which one of the following statements about claims is true?

What should be done if a broker fails to conclude a transaction at the quoted price and the dealer has to accept a lesser quote to neutralize his risk?

Which of the following is the best description of a "broken trade"?

What is the policy of the Model Code on drugs, alcohol and other substance abuse in the dealing room?

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

Principals who enter into an interest rate swap with the intention of shortly afterwards assigning or transferring the swap to a third party:

A bank quotes 3-month EUR deposits at 0.45% -- 0.55% to its broker. The broker lifts the bank's offer at 0.55%. Which of the following steps must the broker take?

Where dealing for personal account is allowed, what safeguards to prevent abuse or insider dealing are stated by the Model Code?

Principals are allowed to:

What needs to be done in the event that a trade is amended by one or both parties?

Management has a specific responsibility to issue guidelines to staff on transacting after-hours and off-premises. Which of the following does the Model Code suggest?

You have bought a 93-day US Treasury bill at 5.63%. What is the true yield?

When is interest conventionally due on a 3-year interbank EUR deposit?

The interest earned on a USD 5,000,000.oo money market deposit for 184 days is USD 12,500.00. What was the interest rate?

The maturity of a straight 3-months deposit falls on Saturday, which happens to be the last day of the month. What is the actual deposit maturity date?

What is the maximum maturity of a US Treasury bill?

What is the major difference between a CD and a deposit?

What happens when a coupon is paid on bond collateral during the term of a sell/buy-back?

A customer gives you GBP 25,000,000.00 at 0.625% same day for 7 days. Through a broker, you place the funds with a bank for the same period at 0.6875%. Brokerage is charged at 2 ba...

How is an outright forward FX transaction quoted?

How much is one big figure worth per million of base currency if EUR/GBP is 0.8990?

A customer would hedge a currency exposure with a forward FX time option if:

If you sell forward USD to a client against EUR, what is the first thing you should do to cover your exposure to exchange rate movements?

You are quoted the following market rates: Spot EUR/USD 1.3097-00 0/N EUR/USD swap 0.08/0.11 TIN EUR/USD swap 0.29/0.34 S/N EUR/USD swap 0.10/0.13 Where can you buy EUR against USD...

You are quoted the following rates: Spot EUR/NOK 7.5250-60 O/N EUR/NOK swap 3.10/3.20 T/N EUR/NOK swap 3.12/3.22 S/N EUR/NOK swap 9.35/9.55 At what rate can you sell EUR against NO...

The market is quoting: 3-month (90-day) NZD 2.55% 6-month (182-day) NZD 2.75% What is the 3x6 rate in NZD?

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?

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

You have borrowed at 3-month LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting: 1x3 USD FRA 0.42-45% 1x4 USD FRA 0.54-58% 1x5 USD FRA 0.57-6...

The buyer of a cap:

The buyer of a currency put option has:

The rho of an option is:

Which of the following statements regarding economic capital is correct?

Who typically communicates the bank's asset and liability management policy internally?

You have prepared the following economic capital table for the next ALCO meeting: For which of the following risks should you consider actions?

All other things being equal the interest rate risk of a fixed coupon bond is:

What is settlement risk in FX?

Taking collateral to hedge the credit risk on a counterparty means that you have:

You want to hedge your deposit against falling interest rates. Which of the alternatives below are appropriate for this purpose?