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

You have a right to qualify your quotes in terms of amounts, if you do so when you make the price.

You have a right to qualify your quotes in terms of amounts, provided the amounts are marketable.

You have a right to qualify your quotes in terms of amounts, once you have discovered the name of the counterparty for credit reasons.

You have a right to qualify your quotes in terms of amounts.

enable the parties to comply with any capital adequacy requirements

provide for the absolute transfer of title to securities

provide for the calculation of initial consideration of the repo transaction

detail the course of action in the case of defaults, for example the rights and obligations of the counterparties and the full set-off of claims between the parties

Long a straight bond + pay fixed on a swap = long a synthetic Floating Rate Note

Long a straight bond + pay floating on a swap = long a synthetic Floating Rate Note

Short a straight bond + receive fixed on a swap = long a synthetic Floating Rate Note

Short a straight bond + pay fixed on a swap = long a synthetic Floating Rate Note

EURIBOR

EONIA

LIBOR

SONIA

Mark-to-model valuation is used for exchange-traded positions to ensure correct pricing.

Asset managers are not allowed to use mark-to-model valuation.

Mark-to-model valuation is used for complex financial instruments; it is always accurate and in line with potential tradable prices.

Mark-to-model valuation refers to prices determined by financial models, rather than actual market prices.

the details of the transaction involved, the number of days the payment was delayed and the resulting cost

the details of the transaction involved, the number of days the payment was delayed and the cost, together with Central Bank rate to be applied

the details of the transaction involved, the number of days the payment was delayed and the cost, together with reference rates to be applied

the details of the transaction involved, the number of days the payment was delayed and the cost, together with the calculation methodology being claimed

The market value of bond collateral at the start of the repo at the clean price of the bond

The market value of bond collateral at the start of the repo at the dirty price of the bond

The amount of cash actually paid for collateral at the start of the repo

The amount of cash actually paid for collateral at the start of the repo plus repo interest

The market value of bond collateral at the end of the repo at the clean price of the bond

The market value of bond collateral at the end of the repo at the dirty price of the bond

The amount of cash actually paid for collateral at the start of the repo

The amount of cash actually paid for collateral at the start of the repo plus repo interest

Time stamps on e-trading platforms need to be internally and globally synchronised to ensure appropriate tracking of trades

All records should be archived and appropriate audit trails must be maintained as required by the local Central Bank

Regular tests for loss of access to external liquidity platforms but not loss of service to clients should be undertaken

Testing of the system’s capability to cope with extreme volumes should be carried out annually

Profit of CHF 29,750.00

Profit of SEK 29,750.00

Loss of SEK 29,750.00

Loss of CHF 29,750.00

Wherever the parties agree

In London

In NewYork

In Frankfurt

No, it doesn’t, since the slope of the yield cure is unrelated to the spread between short-term and long-term interest rates.

No, it doesn’t. There isn’t any link at all between the slope of the interest yield curve and a bank’s net interest margin.

Yes it does. In banking, long-term rates usually apply to bank deposits and money market borrowings whereas short-term interest rates are attached to loans and securities.

Yes it does. Long-term rates usually apply to a bank’s assets (loans, securities, etc.) and the short term interest rates are generally attached to liabilities (deposits, money market borrowings, etc.).

A manual “kill button” to disable the system’s ability to trade and cancel all resting orders.

An ‘inbound message rate” feature that monitors the number of confirmation messages that are sent from trading venues within a specific time period.

A “repeated automated execution throttle” monitoring the frequency of strategies that are filled and then re-entered into the market without human intervention through automated trading systems.

A “fat-finger quantity” feature limiting the size of orders that can be sent from the trading systems and preventing order quantities above the fat-finger limit from leaving the system.

The “big figure” should not be included in outright quotations.

In order to avoid misunderstandings, the “big figure” should not be mentioned when repeating the details (facts/rates) of the deal.

For the sake of brevity and efficiency, “big figures” should never be quoted at all in spot FX trading.

The Model Code recommends that the “big figure” be included in all outright and spot FX quotations.

adding up expected vault cash outflows, ATMs and other cash points operated by the institution across all branches

establishing a forward cash flow plan that takes account of all contractual and behavioral cash flows related to assets and liabilities

the net cash flow from investment activities in the IFRS consolidated Statement of Cash Flows for prior periods

subtracting short-term liabilities from short-term assets