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Pass 3I0-012 Exam Guide

Page: 22 / 28
Total 740 questions

ACI Dealing Certificate Questions and Answers

Question 85

Which of the following statements is true? The repo legal agreement between the two parties concerned should:

Options:

A.

detail the rights of counterparties regarding the substitution of collateral

B.

include named securities permitted to be traded

C.

be bi-laterally signed by both dealers involved in any transaction

D.

need not be in place before any deals are executed or finalized

Question 86

Extended trading hours and off-premises dealing can involve additional hazards, the avoidance of which requires clear controls. The Model Code prescribes best market practice. Which of thefollowing is true?

Options:

A.

Off-premises dealing should be strictly prohibited.

B.

After-hours trading should be prohibited.

C.

Deals transacted after normal business hours or off-premises should only be undertaken on mobile phones approved by management.

D.

Deals transacted after normal business hours or off-premises either by mobile phones or any other equipment should only be undertaken with the approval of management.

Question 87

Which of the following statements regarding economic capital is correct?

Options:

A.

Economic capital is calculated externally and is the amount of capital the firm should have to support its target credit rating

B.

Economic capital is calculated on an expected shortfall basis with a specific time horizon and confidence level.

C.

Economic capital is used for measuring and reporting risks across a financial organisation.

D.

Economic capital is always lower than regulatory capital because of the more adequate modelling of correlation effects compared to the regulatory approach.

Question 88

A forward/forward FX swap:

Options:

A.

is a contract by which the maturity of a regular FX swap can be extended at an historic (noncurrent) rate

B.

is a swap transaction where the near leg is traded either value today or value tomorrow and the far leg is traded spot

C.

is a swap that does not start spot and where both the near and the far leg are traded forward

D.

is a transaction by which a maturing outright forward FX is prolonged at an historic (non-current) rate

Page: 22 / 28
Total 740 questions