Question 1

Which type of repo is the least risky for the buyer?

Accepted Answer

A)  Delivery repo 
B)  HIC repo 
C)  Tri-party repo 
D)  There is no real difference 
A)  Delivery repo 
B)  HIC repo 
C)  Tri-party repo 
D)  There is no real difference

Question 2

How could your firm avoid the risks of dealing through an agent with an unknown principal?

Accepted Answer

A)  Insist on a guarantee by the intermediary. 
B)  Have the intermediary identify the principal to th 
C)  It is not possible to avoid these risks unless you 
D)  In practice, the risks are minimal provided you de 
A)  Insist on a guarantee by the intermediary. 
B)  Have the intermediary identify the principal to th 
C)  It is not possible to avoid these risks unless you 
D)  In practice, the risks are minimal provided you de

Question 3

You have done the following deals in spot USD/JPY: Sold USD 5.0 million at 111.60 Bought USD 3.5 million at 111.20 Bought USD 2.0 million at 111.50 Sold USD 2.0 million at 111.55 What position do you now have?

Accepted Answer

A)  Short USD 1.50 million at 112.60 
B)  Short USD 3.50 million at 111.75 
C)  Long USD 1.50 million at 111.10 
D)  Long USD 3.50 million at 111.55 
A)  Short USD 1.50 million at 112.60 
B)  Short USD 3.50 million at 111.75 
C)  Long USD 1.50 million at 111.10 
D)  Long USD 3.50 million at 111.55

Question 4

What is an outright forward FX transaction?

Accepted Answer

A)  A spot sale (purchase) and a forward purchase (sal 
B)  A spot sale (purchase) and a forward sale (purchas 
C)  An exchange of currencies on a date beyond spot an 
D)  An exchange of currencies on a date beyond spot 
A)  A spot sale (purchase) and a forward purchase (sal 
B)  A spot sale (purchase) and a forward sale (purchas 
C)  An exchange of currencies on a date beyond spot an 
D)  An exchange of currencies on a date beyond spot

Question 5

Brokers shall not reveal the identity of a counterparty unless:

Accepted Answer

A)  They are forced to do so. 
B)  Explicitly authorised to do so by the counterparty 
C)  They know the counterparty very well. 
D)  They are asked by their senior management to do so 
A)  They are forced to do so. 
B)  Explicitly authorised to do so by the counterparty 
C)  They know the counterparty very well. 
D)  They are asked by their senior management to do so

Question 6

Confirmations should be sent out by both counterparties through an efficient and secure means of communication, preferably electronic:

Accepted Answer

A)  Within 24 hours of the deal. 
B)  Within two business days of the deal. 
C)  Before the value date. 
D)  As soon as possible. 
A)  Within 24 hours of the deal. 
B)  Within two business days of the deal. 
C)  Before the value date. 
D)  As soon as possible.

Question 7

Cable is quoted at 1.6075-80 and you say "5 yours!" to the broker. What have you done?

Accepted Answer

A)  Sold USD 5 million at 1.6075 
B)  Sold GBP 5 million at 1.6075 
C)  Bought GBP 5 million at 1.6080 
D)  Bought USD 5 million at 1.6080 
A)  Sold USD 5 million at 1.6075 
B)  Sold GBP 5 million at 1.6075 
C)  Bought GBP 5 million at 1.6080 
D)  Bought USD 5 million at 1.6080

Question 8

It is up to the vendors of electronic dealing platforms to ensure that dealers are trained to use their systems.

Accepted Answer

A)  Management should ensure dealers fully understand 
B)  Management, dealers and vendors share responsibili 
C)  Dealers are required to pass the ACI Dealing Certi 
D)  Given the wide range of electronic dealing platfor 
A)  Management should ensure dealers fully understand 
B)  Management, dealers and vendors share responsibili 
C)  Dealers are required to pass the ACI Dealing Certi 
D)  Given the wide range of electronic dealing platfor

Question 9

If 6-month EUR/AUD is quoted at 29/32, which of the following statements is correct?

Accepted Answer

A)  EUR rates are higher than AUD rates in the 6-month 
B)  AUD rates are higher than EUR rates in the 6-month 
C)  There is a positive EUR yield curve 
D)  There is not enough information to decide 
A)  EUR rates are higher than AUD rates in the 6-month 
B)  AUD rates are higher than EUR rates in the 6-month 
C)  There is a positive EUR yield curve 
D)  There is not enough information to decide

Question 10

You quote the following rates to a customer: spot GBP/CHF 2.2005-10 3M GBP/CHF swap 120/115 At what rate do you sell GBP to a customer 3-month outright?

Accepted Answer

A)  2.1890 
B)  2.2125 
C)  2.1895 
D)  2.1885 
A)  2.1890 
B)  2.2125 
C)  2.1895 
D)  2.1885

Question 11

When a broker calls "off" at the very instant a dealer "hits" the broker's price:

Accepted Answer

A)  The transaction should be concluded. 
B)  The broker decides whether or not the deal is done 
C)  ACI's Committee for Professionalism will decide wh 
D)  The transaction should not be concluded. 
A)  The transaction should be concluded. 
B)  The broker decides whether or not the deal is done 
C)  ACI's Committee for Professionalism will decide wh 
D)  The transaction should not be concluded.

Question 12

If GBP/USD is quoted to you at 1.6120-30, how much GBP would you receive if you sold USD 2,000,000 ?

Accepted Answer

A)  1,239,925.60 
B)  1,237,873.80 
C)  1,240,694.79 
D)  1,242,720.50 
A)  1,239,925.60 
B)  1,237,873.80 
C)  1,240,694.79 
D)  1,242,720.50

Question 13

The Interest Rate Parity Theorem states that:

Accepted Answer

A)  Interest rates in different currencies will tend t 
B)  Interest rates in different currencies differ due 
C)  Selling a low interest rate currency to invest a h 
D)  Selling a low interest rate currency to invest in 
A)  Interest rates in different currencies will tend t 
B)  Interest rates in different currencies differ due 
C)  Selling a low interest rate currency to invest a h 
D)  Selling a low interest rate currency to invest in

Question 14

In a dispute between the dealer and a broker, the Model Code recommends that this should be referred in the first instance to:

Accepted Answer

A)  Central bank. 
B)  Senior management of the bank and the brokerage fi 
C)  Head of compliance. 
D)  ACI's Committee for Professionalism (CFP). 
A)  Central bank. 
B)  Senior management of the bank and the brokerage fi 
C)  Head of compliance. 
D)  ACI's Committee for Professionalism (CFP).

Question 15

Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO / USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:

Accepted Answer

A)  The name of Banks A and B. 
B)  The name of Bank B only. 
C)  The amount that was bid but not the name of Bank A 
D)  None of the above 
A)  The name of Banks A and B. 
B)  The name of Bank B only. 
C)  The amount that was bid but not the name of Bank A 
D)  None of the above

Question 16

When is a broker allowed to assume a deal is closed:

Accepted Answer

A)  When one of the principals confirms the deal. 
B)  When the principals give a written undertaking for 
C)  When an acknowledgement is received from the princ 
D)  When both back offices acknowledge the deal. 
A)  When one of the principals confirms the deal. 
B)  When the principals give a written undertaking for 
C)  When an acknowledgement is received from the princ 
D)  When both back offices acknowledge the deal.

Question 17

What is an FX swap?

Accepted Answer

A)  An exchange of two streams of interest payments in 
B)  A spot sale (purchase) and a forward purchase (sal 
C)  An exchange of currencies on a date beyond spot an 
D)  None of the above 
A)  An exchange of two streams of interest payments in 
B)  A spot sale (purchase) and a forward purchase (sal 
C)  An exchange of currencies on a date beyond spot an 
D)  None of the above

Question 18

What is replacement cost a function of?

Accepted Answer

A)  Credit risk 
B)  Market risk 
C)  Both of the above 
D)  None of the above 
A)  Credit risk 
B)  Market risk 
C)  Both of the above 
D)  None of the above

Question 19

Fraud is typically classified as:

Accepted Answer

A)  Credit risk 
B)  Market risk 
C)  Legal risk 
D)  Operational risk 
A)  Credit risk 
B)  Market risk 
C)  Legal risk 
D)  Operational risk

Question 20

An option premium is a positive function of:

Accepted Answer

A)  Time to expiry 
B)  The volatility of the price of the underlying comm 
C)  The moneyness of the option 
D)  All of the above 
A)  Time to expiry 
B)  The volatility of the price of the underlying comm 
C)  The moneyness of the option 
D)  All of the above

Which type of repo is the least risky for the buyer?

How could your firm avoid the risks of dealing through an agent with an unknown principal?

You have done the following deals in spot USD/JPY: Sold USD 5.0 million at 111.60 Bought USD 3.5 million at 111.20 Bought USD 2.0 million at 111.50 Sold USD 2.0 million at 111.55 What position do you now have?

What is an outright forward FX transaction?

Brokers shall not reveal the identity of a counterparty unless:

Confirmations should be sent out by both counterparties through an efficient and secure means of communication, preferably electronic:

Cable is quoted at 1.6075-80 and you say "5 yours!" to the broker. What have you done?

It is up to the vendors of electronic dealing platforms to ensure that dealers are trained to use their systems.

If 6-month EUR/AUD is quoted at 29/32, which of the following statements is correct?

You quote the following rates to a customer: spot GBP/CHF 2.2005-10 3M GBP/CHF swap 120/115 At what rate do you sell GBP to a customer 3-month outright?

When a broker calls "off" at the very instant a dealer "hits" the broker's price:

If GBP/USD is quoted to you at 1.6120-30, how much GBP would you receive if you sold USD 2,000,000 ?

The Interest Rate Parity Theorem states that:

In a dispute between the dealer and a broker, the Model Code recommends that this should be referred in the first instance to:

Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO / USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:

When is a broker allowed to assume a deal is closed:

What is an FX swap?

What is replacement cost a function of?

Fraud is typically classified as:

An option premium is a positive function of:

ACI Dealing Certificate-Part B

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Exam 1: ACI Dealing Certificate-Part A

Which type of repo is the least risky for the buyer?

How could your firm avoid the risks of dealing through an agent with an unknown principal?

You have done the following deals in spot USD/JPY: Sold USD 5.0 million at 111.60 Bought USD 3.5 million at 111.20 Bought USD 2.0 million at 111.50 Sold USD 2.0 million at 111.55 What position do you now have?

What is an outright forward FX transaction?

Brokers shall not reveal the identity of a counterparty unless:

Confirmations should be sent out by both counterparties through an efficient and secure means of communication, preferably electronic:

Cable is quoted at 1.6075-80 and you say "5 yours!" to the broker. What have you done?

It is up to the vendors of electronic dealing platforms to ensure that dealers are trained to use their systems.

If 6-month EUR/AUD is quoted at 29/32, which of the following statements is correct?

You quote the following rates to a customer: spot GBP/CHF 2.2005-10 3M GBP/CHF swap 120/115 At what rate do you sell GBP to a customer 3-month outright?

When a broker calls "off" at the very instant a dealer "hits" the broker's price:

If GBP/USD is quoted to you at 1.6120-30, how much GBP would you receive if you sold USD 2,000,000 ?

The Interest Rate Parity Theorem states that:

In a dispute between the dealer and a broker, the Model Code recommends that this should be referred in the first instance to:

Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO / USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:

When is a broker allowed to assume a deal is closed:

What is an FX swap?

What is replacement cost a function of?

Fraud is typically classified as:

An option premium is a positive function of:

ACI Dealing Certificate-Part B

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