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ACI-Financial 3I0-012 Full Course Free

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Total 740 questions

ACI Dealing Certificate Questions and Answers

Question 97

What would happen to a bank’s net interest income if it ran a zero gap in an environment of decreasing interest rates?

Options:

A.

Net interest income would increase slightly.

B.

Net interest income would increase considerably.

C.

Net interest income would decrease.

D.

Net interest income would hardly change at all.

Question 98

Which of the following statements does not explain why banks accept some amount of interest rate risk?

Options:

A.

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

B.

Banks incur interest rate risk to increase income

C.

Banks prefer c red it risk to market risk.

D.

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

Question 99

With regard to operational risk awareness, which of the following best practices is incorrect?

Options:

A.

A report describing operational risks, the most significant incidents and corrective plans of action should be established on a quarterly basis.

B.

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

C.

Every time a report describing operational risks is produced, it should be provided to senior management.

D.

Whenever possible action plans should be put in place that mitigate operational risks that have been identified.

Question 100

An ‘at-the-money’ call option:

Options:

A.

Costs more than an ‘in-the-money’ call option

B.

Costs less than an ‘out-of-the-money’ call option

C.

Costs more than an ‘out-of-the-money’ call option

D.

Costs the same as an ‘in-the-money’ put option

Page: 25 / 28
Total 740 questions