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

Kosovo

Andorra

Albania

Montenegro

the Asset Liability Management Committee (ALCO)

the Financial Resources and Compensation Committee

the Credit Committee

the Federal Open Market Committee

A report describing operational risks, the most significant incidents and corrective plans of action should be established on a quarterly basis.

It is good practice to collect and analyze incidents and near-misses so as to set up preventive action plans for the future.

Every time a report describing operational risks is produced, it should be provided to senior management.

Whenever possible action plans should be put in place that mitigate operational risks that have been identified.

to mitigate market replacement risk across markets

to eliminate funding mismatches by establishing a minimum acceptable amount of stable funding

to ensure that banks have enough high-quality liquid assets to survive a 30-day period of acute market stress

to minimize duration risk on a bank’s assets over a one-year horizon

1.2993

1.3023

1.3141

1.4323

Hedging a long bond position with payer’s swap involves basis risk

Hedging the credit risk of an asset swap package with a credit default swap has no basis risk

Basis risk is a result only of maturity mismatches

Basis risk is a result only of duration mismatches.

FRA

Futures

No difference

Too little information to decide

The quoted currency

The base currency

The counter currency

The terms currency

Eurodollar deposits can only be dealt by banks in the USA

US withholding tax applies to Eurodollar deposits

Eurodollar deposits are free of US reserve requirements

Eurodollar deposits are subject to US exchange controls

if a principal refuses to honour the deal

no conditions are required; the broker is entitled to take positions

only if he can not find another counterparty for a name switching

brokers act only as intermediaries or arrangers of deals

The parking of deals or positions with any counterparty is discouraged B. The parking of deals or positions with any counterparty should be forbidden

The parking of deals or positions should be subject to a clear policy laid down in writing by senior management

In jurisdictions where position parking is allowed, prior approval should be sought from the regulator

It is reasonable for the bank to purchase futures contracts if they expect interest rates to rise.

It is reasonable for the bank to take a long position in anticipation of rising rates.

Losses (or gains) in the value of the cash position can be largely offset by gains (or losses) in the value of the futures position

It is reasonable for the bank to sell futures contracts if it expects interest rates to fall

1.42%

1.39%

2.01%

4.21%

as a EUR 25,000,000.00 6-month liability and a EUR 25,000,000.00 12-month asset

as a EUR 25,000,000.00 12-month liability and a EUR 25,000,000.00 6-month asset

as a EUR 12,500,000.00 6-month liability and a EUR 12,500,000.00 12-month asset

as a EUR 12,500,000.00 6-month asset and a EUR 12,500,000.00 12-month liability

0.25%

0.375%

0.75%

0.50%