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Full Access ACI 3I0-012 Tutorials

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Question 76

All other things being equal, if a bank borrows short and lends long what is the effect on the liquidity risk of the bank?

Options:

A.

positive

B.

changes only when interest rates levels are high

C.

negative

D.

changes only when interest rates levels are low

Question 77

How is an outright forward FX transaction quoted?

Options:

A.

pared points

B.

Depends on the term

C.

Depends on whether it is interbank or to a customer

D.

Depends on the currency pair

Question 78

A fixed rate forward/forward non-deliverable deposit/loan transaction, settled in cash with an agreed upon process for calculating the market reference at the commencement of the forward/forward period, is called:

Options:

A.

an interest rate swap

B.

a forward rate agreement

C.

a short term interest rate future

D.

an interest rate collar

Question 79

Which of the following statements about requirements for dealing with limit violations is correct?

Options:

A.

Financial institutions have to establish procedures for handling limit breaches that are in accordance with their decision-making hierarchy.

B.

If a partial limit violation does not exceed the overall limit, no reaction is required.

C.

The definition of escalation levels is not required in order to react appropriately to different sorts and intensities of limit breaches.

D.

It is adequate and proper to define reactions only to standard cases of limit violations.

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Exam Code: 3I0-012
Exam Name: ACI Dealing Certificate
Last Update: Nov 7, 2024
Questions: 740
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