ACI - Operations Certificate (3I0-010) Free Practice Test

Question 1

When an over-the-counter broker executes an order for your bank, what information is required on the confirmation you are sent?

A. the price of the security; the role played by the broker; and the commission, if any, that was charged

B. The price of the security; the role played by the broker; the commission, if any, that was charged and the security that was bought or sold

C. the price of the security

D. the price of the security; the role played by the broker

Correct Answer: B

Question 2

The CLS-Bank (Continuous Linked Settlement) is one of the ways through which FX transactions can be settled. Why was this bank founded?

A. to minimize settlement risks

B. to simplify domestic payments

C. to accelerate cross-border payments

D. to handle interbank liquidity more efficiently

Correct Answer: A

Question 3

What is the deadline for a same day customer payment in EUR using TARGET?

A. 16:00 hours Central European Time (CET)

B. 18:00 hours Central European Time (CET)

C. 15:00 hours Central European Time (CET)

D. 17:00 hours Central European Time (CET)

Correct Answer: D

Question 4

You bought a 6x9 EUR 8,000,000.00 FRA at 4.50%. Settlement is now due and 3 months (90 days) EURIBOR is 3.50%. What amount do you pay or receive?

A. receive EUR 20,000.00

B. receive EUR 19,826.52

C. pay EUR 19,826.52

D. pay EUR 20,000.00

Correct Answer: C

Question 5

The calculation method of the foreign exchange rates for value today or for value tomorrow outrights:

A. is based on the interest rate differential between the two currencies

B. is based on the same calculation method as the forward rate agreements (FRA)

C. is based on linear interpolation

D. is based on the calculation of compound interest rates

Correct Answer: A

Question 6

Your dealer has sold EUR 5,000,000.00 against USD at 1.0945. How much would you expect to receive in settlement?

A. USD 5,472,500.00

B. USD 3,619,487.12

C. USD 3,618,523.32

D. USD 5,453,650.00

Correct Answer: A

Question 7

On the sale of a CD, the seller

A. receives a price calculated using the price originally paid

B. receives a higher price than he originally paid

C. there is not enough information to know how much the seller receives

D. receives a lower price than he originally paid

Correct Answer: C

Question 8

Which of the following is a fundamental element or module in the "securities dealing and processing" part of a treasury system?

A. brokerage accounting

B. the financial reporting standard

C. the country limit overview

D. the custodian account reconciliation function

Correct Answer: D

Question 9

The control failings involving Barings and Daiwa highlight the critical importance of what operational risk management practice?

A. the taping of conversations between counterparties

B. model signing-off and implementation controls

C. the existence of contingency plans

D. the separation between front/back office duties

Correct Answer: D

Question 10

All trades, internal and external, should be entered into trade capture systems:

A. within 24 hours of execution

B. as soon as possible

C. within an hour of execution

D. the same day they are executed

Correct Answer: B

Question 11

When should discrepancies between front-office and back-office systems be resolved?

A. by the end of the trading day

B. on the next business day

C. as soon as they become apparent

D. on the value date

Correct Answer: C

Question 12

If today's spot date were Monday, 1 March, what would be the maturity of a 1-month CHF interbank deposit, assuming that there are no intervening bank holidays?

A. Wednesday, 31 March

B. Thursday, 1 April

C. Tuesday, 30 March

D. Friday, 2 April

Correct Answer: B

Question 13

What is a ladder maturity report?

A. a list of the maturity of all deals per value date

B. a report that begins with a zero balance and at the end of the day, lists all FX deals by maturity

C. a report of outstanding securities transactions

D. a report that starts with the net open position and runs off day by day to arrive at a zero balance

Correct Answer: A

Question 14

The term "tom next" is used to describe a swap for which period?

A. today against tomorrow

B. tomorrow against spot

C. tomorrow against the day after spot

D. today against spot

Correct Answer: B

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ACI - Operations Certificate (3I0-010) Free Practice Test