Free and Premium ACI 3I0-013 Dumps Questions Answers

Derivatives brokers significantly over-charged their clients

Institutions did not understand the leverage of their transactions

Money managers engaged in intra-day trading

Money managers embezzled money using derivatives

Liquidity, market and counterparty risk

Only a funding risk

Only a liquidity and a funding risk

Settlement, funding and liquidity risk

Always close to 100%

Above 100%

Below 100%

Always precisely 100%

ACT/360

ACT/ACT

360/360

ACT/365

Profit GBP 240,000.00

Loss GBP 240,000.00

Profit USD 240,000.00

Loss USD 240,000.00

Largely the interest rate differential between two currencies

The price of an option

The expectation of an appreciation of a currency

The volatility of a currency

Account reconciliations are necessary for the early detection of missing, failed or erroneous entries.

Custody accounts should be reconciled after each account movement or at least once a month.

Reconciliations related to transactions and balances should only be conducted for cash accounts.

Cash accounts should be reconciled as soon as an updated account statement is available.

Cash-settled currency forward between two counterparties

Exchange-traded, cash-settled currency forward

Over-the-counter, cash-settled spot FX

Principal-settled currency forward between two counterparties

Short EUR 2,450,000.00 at 1.3528

Long EUR 2,450,000.00 at 1.3528

Long EUR 2,000,000.00 at 1.3532

Long EUR 2,450,000.00 at 1.3525

Tuesday, 30 March

Wednesday, 31 March

Thursday, 1 April

Friday, 2 April

EURIBOR

SONIA

EONIA

EURONIA

GBP 98,750.00

GBP 100,000.00

GBP 99,688.36

GBP 99,684.03

EUR 1,388.89

EUR 1,561.11

EUR 2,255.56

EUR 2,951.39

An asset swap

A CFD (contract for difference)

A repo

A securities lending

To cancel an initial payment order and to process a new one with a higher amount

To suspend a payment order until the balance becomes positive again

To adjust the amount of fees to be paid

To change the value date of a payment order

The FX spot and forward dealing input and processing module

Standard back office features

The money market dealing and processing module

The securities trading and processing module

To simplify domestic payments

To handle interbank liquidity more efficiently

To accelerate cross-border payments

To minimize settlement risks

May be freely chosen by the quoting party as long as both parties agree on it

Must always be fixed immediately at the current mid rate, to reflect the rate at the time the deal was made

Should be fixed immediately within the current spread, to reflect current rates at the time the transaction was made

Should always be fixed off the current spread in order not to be mistaken for a spot FX transaction

Tell him all you know

Tell him nothing

Give him some of the information because the deal involves a mutual customer

Tell him you will investigate and get back to him with the information

To prevent that a failed order results in a failure to settle that day, which in turn would lead to an incompletely-reconciled account.

To facilitate the handling of complex security transactions.

In order to save data capacity in electronic archiving systems.

To anticipate the fact that clearing houses stop processing in the afternoon, whereas payment orders may still be processed until 6 p.m.

CHAPS

TARGET 2

EAF

FX-NET

The bank is entitled to seek reimbursement from the party responsible for the late payment.

Nothing can be done to compensate the bank for the interest charges it incurs.

The bank should file a complaint with ACI’s Committee for Professionalism.

The bank will automatically be reimbursed by the party responsible for the late payment.

EUR 8,219.18

EUR 8,333.33

EUR 18,219.18

EUR 18,333.33

The following Monday

Saturday

The last business day of the month

The first business day of the following month

An account that you hold with another commercial bank

An account that another bank holds with you

An account that you hold with the Bank of England

Your suspense account at the European Central Bank

1%

0.01%

0.1%

0.0001%

The futures exchange itself

The clearing house of the futures exchange

Your broker

The ISDA

A Medium Term Note

A Banker’s Acceptance

A Money Market Deposit

A Treasury Bill

Claims are not expected to be submitted after 15 days from the actual settlement date.

Claims of less than USD 5,000.00 are not expected to be submitted.

Claims are calculated on the full principal amount of the failed transaction. Interest rates are imposed by the agent banks, unless a higher negotiated rate is to be applied.

Acknowledgement of receipt of a claim should be confirmed within 48 hours by email or SWIFT.

It is only permissible in derivatives markets

Both parties of a trade should send confirmations

It is recommended

It is only permissible when dealing value today

The maintenance margin is a predetermined fraction of initial margin

The initial margin is a predetermined fraction of maintenance margin

The maintenance margin represents the brokerage costs

The maintenance margin represents management fees

Front office staff should not be able to modify confirmations.

The staff who confirm trades should be distinct from those who agree to and execute trades.

The process of confirming trades should be done only by Operations staff.

Only staff who agree to and execute trades should be permitted to modify any details of the written confirmation.

The clearing house phone number

The account number to which fees are booked

The identity of the counterparty’s dealer

The name of the counterparty

The overnight interest rates of both currencies

The spot next interest rates of both currencies

The one week interest rates of both currencies

The torn next interest rates of both currencies

The financial reporting standard

Brokerage accounting

The custodian account reconciliation function

The country limit overview

USD 1,000,000.00

USD 998,104.17

USD 992,500.00

USD 998,130.14

ZAR

TRY

MYR

CNY

The close-out process

The customer matching process

The settlement process

The securities lending process

Confirmations authenticate the transaction to the risk manager, as well as providing essential information regarding bilateral limits.

in order to authenticate the BIC-code of the counterparty when the confirmation is sent via SWIFT.

in order to have the exact mailing address of the counterparty when the confirmation is sent via mail.

Confirmations authenticate transactions to staff independent of the dealing room, as well as providing essential information regarding settlement.

That a daily nostro reconciliation report is sent out to the correspondent bank

That they are performed before the next business day

That they are performed in a timely and efficient way

That open items are booked on an internal account

Monday, 13 March

Tuesday, 14 March

Wednesday, 15 March

Thursday, 16 March

The strike price of a Bermudan option is an average.

A Bermudan option can be exercised only on a few specific dates prior to expiration.

A Bermudan option can be exercised at any time before its maturity date.

A Bermudan option can be exercised only at maturity.

The date by which the interest payment on an operation must be made

The last date by which the minimum reserve amount can be paid to the central bank

The date, on which settlement must be made on the contracted amount or the differential amount of an operation

The date a deal is processed

GBP

USD

CHF

EUR

A “probable matched items report” (a report in which most fields match but there are some discrepancies)

A “calculated fees report” (a report of the expected fees owed)

A “matched items report” (a report of all fields that match)

An “unmatched items report” (a report of items for which one is unable to find matches)

From the counterparty: the trade confirmation, In-house: the trade confirmation, nostro reconciliation details, the dealing ticket and eventually dealing-system conversation printout

From the counterparty: the dealers name and phone number. In-house: dealer's name as well as the exact time the deal was processed

From the counterparty: the trade confirmation, In-house: the open item list, nostro reconciliation details and the dealing ticket

From counterparty: the balance report and the trade confirmation; In-house: the dealing-system conversation printout

The date a trade is undertaken

The date the fixing rate is agreed upon

The date the settlement occurs

The date confirmations are exchanged between counterparties

You should decline the gift.

You should share the gift amongst your back office colleagues.

You should report the gift to management and leave it to the management's discretion as to whether you are allowed to keep the gift.

You should accept the gift without question as it was personally addressed to you.

By the end of the trading day

On the next business day

On the value date

As soon as they become apparent

Has the obligation to convert his bond

Has the right to convert his bond

Must wait for the decision of the issuer if he wants to convert his bond

Has the obligation to convert the coupon into a variable or a fixed rate

The purchase of shares through Eurex Clearing (payment against delivery)

The purchase of an OTC call option

The taking of call money

A long position in Bund futures

He/she should report this to his/her supervisor

He/she should respond to the questions

He/she should avoid the dealer

He/she should refuse to answer the questions

The parties may agree verbally not to exchange confirmations

A party can unilaterally eliminate confirmations for these trades

It is left to the discretion of each party to send a confirmation or not

The parties may agree in writing not to exchange confirmations

Each transaction should be processed always in advance of the payment cut-off time.

Know the status of your trade.

Prioritize trade settlement considering payment cut off times including currency sensitivity and size of amount.

A trade booked in the front office should be available to the cash management department no later than the close of trading day for nostro account management.

EUR 694.44

EUR 781.94

EUR 1,041.67

EUR 1,129.17

Writing the deal ticket

Arranging the delivery of currency payments

Checking the availability of counterparty limits

Agreeing on the FX rate with the counterparty's middle office

Jamaica

Jordan

Bosnia

Japan