3I0-012 Online Practice Questions and Answers

Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?

A. minimum tier 1 capital of 4.5% and minimum total capital plus a conservation buffer of 10.5%

B. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 8%

C. minimum tier 1 capital of 4% and minimum total capital including conservation buffer of 10.5%

D. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%

From the following AUD rates:

3M AUD (91-day) deposits 2.35% 3x6 AUD (90-day) FRA 2.55% Calculate the 6-month implied cash rate.

A. 2.37%

B. 2.46%

C. 2.55%

D. 4.90%

At the end of the day, you are short CHF 3,500,000.00 against SEK at 6.9275. You are asked to revalue your position at 6.9190. What is the resulting profit or loss?

A. Profit of CHF 29,750.00

B. Profit of SEK 29,750.00

C. Loss of SEK 29,750.00

D. Loss of CHF 29,750.00

A purchased 3X6 FRA should be reported in a gap report as

A. a given deposit with a term of six months

B. a taken deposit with a term of three months

C. a given deposit with a term of three months and a taken deposit with a term of six months

D. a taken deposit with a term of three months and a given deposit with a term of six months

What is the purpose of a short straddle option strategy?

A. To anticipate lower volatility in the price of the underlying commodity

B. To anticipate moderately high volatility in the price of the underlying commodity

C. To anticipate increasing volatility in the price of the underlying commodity

D. To anticipate very high volatility in the price of the underlying commodity

Today's date is Thursday 12th December. What is the spot value date? Assume no bank holidays.

A. 14th December

B. 15th December

C. 16th December

D. 17th December

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

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.

How much is a big figure worth per million of base currency it EUR/GBP is 0.6990?

A. GBP 10,000

B. EUR 10,000

C. GBP 6,990

D. EUR 6,990

In all dealing conversations, the Model Code strongly recommends:

A. Dealers stick to market terminology in order to avoid the impression that they are offering an advisory or fiduciary role.

B. Dealers clarity what is being proposed rather than using any terminology that could be misinterpreted.

C. Dealers restrict themselves to terminology listed and explained in Chapter 11 of the Model Code.

D. Dealers define complex terminology in the confirmation of a deal.

Where the Committee for Professionalism of the ACI has been notified of a breach of the letter or spirit of the Model Code, it

A. Will examine the complaint.

B. May consult with the local ACI.

C. Will bring the matter to the attention of the local regulator.

D. None of the above.