Newly Released ACI 3I0-012 Exam PDF

ACI Dealing Certificate Questions and Answers

Question 5

Which one of the following statements is incorrect? Hedge accounting of an existing position no longer applies when:

the trader acquires additional exposure in the hedged item.

the hedging instrument is sold, terminated or exercised.

the hedged item is sold or settled.

a hedge fails the effectiveness test.

Question 6

If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, the correct value date will be:

the value date of the financial centre that is open

the next business day of the financial centre which is closed

the next business day when both New York and Tokyo are open

the previous business day when both New York and Tokyo are open

Question 7

What is EONIA?

Volume-weighted average overnight EUR deposit rate

Volume-weighted average overnight EUR LIBOR

Arithmetic average overnight EUR deposit rate

ECB overnight lending rate

Question 8

Which one of the following statements is true?

Brokers should only show the names of banks to counterparties who have prime credit ratings.

Brokers should only show the names of banks to counterparties who provide good liquidity to the brokered market.

Brokers should only show the names of banks to counterparties whom they know well.

Brokers should only show the names of bank counterparties if both sides display a serious intention to transact