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

The transaction should be concluded and the broker should inform both counterparties accordingly.

The dealer who hits the broker’s price may decide whether the deal is done or not; the broker should inform both counterparties accordingly.

The deal should not be concluded and the broker should inform both counterparties accordingly.

The broker should immediately inform both counterparties that the deal will have to berenegotiated.

anywhere, even away from their own dealing premises

after-hours, but only if listed as such by management

after-hours, but only from their private residence

away from their broker’s dealing premises

To anticipate lower volatility in the price of the underlying commodity

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

To anticipate increasing volatility in the price of the underlying commodity

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

detail the rights of counterparties regarding the substitution of collateral

include named securities permitted to be traded

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

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

Between -0.5 and -1

-0.5

Between +0.5 and +1

+0.5

Nothing

A margin call is triggered on the seller

A manufactured payment is made to the seller

The equivalent value plus reinvestment income is deducted from the repurchase price

Selling distressed assets and investing in bank liabilities trading at distressed levels.

Making sure that fixed assets are depreciated according to the applicable tax code.

Planning the maturity structure and net funding requirements arising from banking book and trading book transactions.

Planning the liability structure and net funding requirements arising from trading book assets carried at amortized cost.

Interbank deposit

Certificate of deposit

Treasury bill

BA

Bank dealers should, wherever possible, give brokers prior indication of counterparties with whom they would be unwilling to do business.

Brokers may divulge the names of principals prematurely to induce a counterparty to transact.

Dealers should never give brokers guidance on the extent of their price differentiation across broad categories of counterparties.

When a principal’s name proves unacceptable to another principal, the broker is bound to divulge who refused it.

5.71%

5.69%

5.72%

5.62%

The risk of failure of a payments or settlement system

The risk that only one side of an exchange of currencies will be made

The risk of payments ‘gridlock’ in a real-time gross settlement system

The risk that default by a counterparty before the value date means you have to replace the defaulted deal at a worse rate

A maturity analysis of a bank’s interest-bearing assets and interest-bearing liabilities.

A method used to measure how much each source of funding is contributing to overall profitability.

A calculation of the spread between the duration of the interest-bearing assets and the interestbearing liabilities.

The evaluation and management of the gap between a bank’s volume of loans and deposits.

The CD yields a higher rate of return

The CD has less credit risk

The CD is a transferable instrument

The CD has a shorter range of maturities

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

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

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

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

the broker is not obligated to reveal any material connections provided Chinese Walls are in place.

the broker is not required to reveal any connections at all.

the broker is legally obliged to advise his clients of any material connections that exist.

is a matter which is not covered by the Model Code.