3I0-012 Exam Dumps - ACI-Financial Questions and Answers

The other dealer should act with honour, honesty and integrity.

It is a purely matter for your two institutions.

Such arrangements are not in any way enforceable or binding.

All of the above.

Currency risk

Interest rate risk

Operational risk

Credit risk

a five-year liability and a three-month asset

a five-year asset and a three-month liability

a five-year asset only

a three-month liability only

Dealers may seek a compensation payment in favor of the bank or an adjustment to brokerage bills from the broker for switching names.

If requested by a broker to clear a transaction through name switching, a dealer must ensure that such activities have the prior approval of senior management.

The practice of name switching/substitution is neither acceptable nor desirable.

Name switching/substitution transactions should be executed as promptly as possible not considering credit limits and policy guidelines.

Interest rates in different currencies will tend to move into line with each other over time

Interest rates in different currencies differ due to differences in expectations about inflation

Selling a low interest rate currency to invest a high interest rate currency will only be profitable if one hedges the currency risk

Selling a low interest rate currency to invest in a high interest rate currency should not be profitable if one hedges the currency risk

Require greater vigilance by the management and staff.

Take particular care when the beneficiary is a third party to the deal.

Ensure that details of all telephone deals which do not include pre-agreed standard settlement instructions are confirmed by telex or similar means without delay.

All of the above.

Falls and rises with the price of the underlying commodity, but is always positive

Rises if the price of the underlying commodity falls and vice versa

Depends solely on the volatility of the price of the underlying commodity

Becomes negative if the market price of the underlying commodity falls below the strike price of the option

The broker is not obligated to reveal the connection provided Chinese Walls are in place.

The broker is not obligated to reveal the connection in the professional market.

The broker should advise the other counterparty of the connection.

The matter is covered in the Model Code.

The other dealer is bound to reciprocate.

This is not in any way an enforceable or binding commitment.

The Model Code does not comment on dealing reciprocity.

It is common market practice to suspend reciprocity in periods of high volatility.

The face value of the CD

More than the face value

Less than the face value

Too little information to decide