Pass the ACI-Financial 3I0-012 Questions and answers with ValidTests

4.261%

2.202%

1.900%

1.592%

anywhere, even away from their own dealing premises

after-hours, but only if listed as such by management

after-hours, but only from their private residence

away from their broker’s dealing premises

USD

AUD

Depends on whether the price is being quoted in Australia or the US

Depends on whether the price is being quoted interbank or to a customer

Interbank deposit

Certificate of deposit

Treasury bill

BA

Economic capital is calculated externally and is the amount of capital the firm should have to support its target credit rating

Economic capital is calculated on an expected shortfall basis with a specific time horizon and confidence level.

Economic capital is used for measuring and reporting risks across a financial organisation.

Economic capital is always lower than regulatory capital because of the more adequate modelling of correlation effects compared to the regulatory approach.

only after consultation with the local regulator

only if the switching transaction is done at the current market rate

only provided that such transactions are identified as switching transactions

only after approval by the broker’s senior management

A maturity analysis of a bank’s interest-bearing assets and interest-bearing liabilities.

A method used to measure how much each source of funding is contributing to overall profitability.

A calculation of the spread between the duration of the interest-bearing assets and the interestbearing liabilities.

The evaluation and management of the gap between a bank’s volume of loans and deposits.

It is good practice to collect and disclose incidents and near-misses for the future benefit of the professional community.

It is good practice to collect and analyze incidents and near-misses so as to set up preventive action plans for the future.

A report describing operational risks should be made at the request of the front office.

A report describing operational risks should be made at least once a year and provided to the front office.

Sell a 1x3 FRA at 0.42%

Buy a 1x3 FRA at 0.45%

Buy a 1x4 FRA at 0.58%

Sell a 1x4 FRA at 0.54%

Bought EUR and sold USD spot, and sold EUR and bought USD forward

Bought USD and sold EUR spot, and sold USD and bought EUR forward

Synthetically taken a USD loan in exchange for making a EUR loan with the same counterparty

Sold EUR/USD spot and bought back EUR/USD forward

There has to be an ultra long term maturity date

The risk taken by the bank must be taken or shared by provider of the capital

The funds must be in the form of pure equity

The funds must be re-invested only in cash

MTn99

MT300

MT370

MT670/671

0%

15%

20%

75%

In their function as intermediaries, banks must necessarily accept some degree of interest rate risk.

Banks incur interest rate risk to increase income

Banks prefer c red it risk to market risk.

If banks failed to take on interest rate risk they would not be able to meet the needs of their deposit and loan customers.

15

20

35

40