Pass the ACI-Financial 3I0-012 Questions and answers with ExamsMirror

When trading in financial products described by the Model Code, dealers and voice brokers need not clarify whether they propose to use standard terms.

Standard terms and conditions should be signed bilaterally by senior management of both principals before any applicable market transactions are entered into.

When using legal agreements any proposed modifications or choices offered in the agreement must be clearly stated as soon as the trade is agreed.

For many instruments, standard master agreements issued by recognized authorities need not be signed by senior management of the principals intending to transact business.

1.534284

1.534316

1.534287

1.534313

pared points

Depends on the term

Depends on whether it is interbank or to a customer

Depends on the currency pair

interest rate risk

model risk

currency risk

specific risk

when a trade has been agreed to with dates (maturities) different from the standard dates

when one of the parties to the deal unilaterally decides to withdraw from the on-going transaction

when, due to a system break, one or both parties to the deal chooses to withdraw from the ongoing transaction

when, due to a system break, one or both parties to the deal are unclear as to whether the deal has been done

Sell a 1x3 FRA at 0.42%

Buy a 1x3 FRA at 0.45%

Buy a 1x4 FRA at 0.58%

Sell a 1x4 FRA at 0.54%

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.

only after consultation with the local regulator

only if the switching transaction is done at the current market rate

only provided that such transactions are identified as switching transactions

only after approval by the broker’s senior management

0.470%

0.196%

0.500%

0.169%

The following Monday

Saturday

Sunday

The previous Friday

Long a FRN + pay fixed on a swap = long a synthetic straight bond

Long a FRN + receive floating on a swap = long a synthetic straight bond

Long a FRN + pay floating on a swap = short a synthetic straight bond

Long a FRN + pay floating on a swap = long a synthetic straight bond.

You will have to pay USD 5,925.00

You will receive USD 5,925.00

You will have to pay USD 3,675.00

You will receive USD 3,675.00

7.525322

7.525312

7.524688

7.524678

the prime-broker and the executing dealer only

the prime-broker and the executing dealer, and between the executing dealer and the client

the prime-broker and the executing dealer, and between the prime-broker and the client

the prime-broker and the client, and between the executing dealer and the client

The broker must show the borrower’s name to the lender first and disclose the lender’s name only if the borrower is acceptable to the lender.

The broker must show the lender’s name to the borrower first and disclose the borrower’s name only if the lender is acceptable to the borrower.

The broker must show the borrower’s and lender’s names to each other at the same time.

For marketing reasons, the broker can show the lender’s name to the borrower at any time.