Download ACI.PracticeDumps.3I0-012.2018-05-25.1e.440q.vcex

ACI.PracticeDumps.3I0-012.2018-05-25.1e.440q.vcexACI.PracticeDumps.3I0-012.2018-05-25.1e.440q.vcexACI.PracticeDumps.3I0-012.2018-05-25.1e.440q.vcexACI.PracticeDumps.3I0-012.2018-05-25.1e.440q.vcexACI.PracticeDumps.3I0-012.2018-05-25.1e.440q.vcexACI.PracticeDumps.3I0-012.2018-05-25.1e.440q.vcex
Exam ACI Dealing Certificate
Number 3I0-012
File Name ACI.PracticeDumps.3I0-012.2018-05-25.1e.440q.vcex
Size 1.11 Mb
Posted June 03, 2018

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Demo Questions

Question 1

An option contract that gives the buyer the right to exercise the option at several distinct points during its life is called:


  • A: European-style option
  • B: American-style option
  • C: Bermudan option
  • D: Asian option
Question 2

When considering interest rate risk in the banking book, retail demand deposits without fixed contractual maturity:


  • A: should be assumed to have zero duration
  • B: should be treated like other instantly variable rate liabilities, such as overnight money market borrowing.
  • C: should be assumed to have a low correlation with money market reference rates
  • D: represent a minor contributor to interest rate risk and can safely be disregarded
Question 3

If the duration gap is zero, how will a small parallel shift in interest rates affect the market value of the bank’s equity?


  • A: If interest rates rise, the market value of equity will increase
  • B: If interest rates rise, the market value of equity will decrease
  • C: The bank is immunised from changes in interest rates.
  • D: The market value of equity will decrease due to an increase in interest rates
Question 4

Which of the following statements is correct regarding duration?


  • A: It is a measure of the average price of a financial instrument.
  • B: It doesn’t take into account the timing and market value of cash flows.
  • C: It increases if the average coupon increases.
  • D: It decreases as maturity decreases
Question 5

Using reprising gap analysis, a bank’s balance sheet is considered liability-sensitive to market interest rate changes, if:


  • A: more liabilities than assets will be reprised in the near term
  • B: more assets than liabilities will be reprised in the near term
  • C: more assets than liabilities have variable rates or short residual maturities
  • D: non-interest bearing liabilities are greater than non-interest bearing assets
Question 6

Which of the following statements about the Liquidity Coverage Ratio is correct?


  • A: The LCR is a measure to ensure that the reserve of high quality liquid assets is sufficient to cover short term demand for liquidity in a stress situation.
  • B: the ratio (cash outflow in a 30-day stress period divided by high quality liquid assets) has to be greater than 100%.
  • C: Covered bonds are class 1 assets.
  • D: Obligations issued by central banks or government agencies are class 2 assets.
Question 7

Which one of the following statements about mark-to-model valuation is correct?


  • A: Mark-to-model valuation is used for exchange-traded positions to ensure correct pricing.
  • B: Asset managers are not allowed to use mark-to-model valuation.
  • C: Mark-to-model valuation is used for complex financial instruments; it is always accurate and in line with potential tradable prices.
  • D: Mark-to-model valuation refers to prices determined by financial models, rather than actual market prices.
Question 8

A closed position in a particular foreign currency exists:


  • A: when the net spot position plus the forward position plus the delta equivalent of the foreign currency options book add up to zero
  • B: when the forward purchases of a foreign currency are equivalent to the equity position in that same currency
  • C: when the reverse repurchases of foreign currency are equal to the forward purchases of the functional currency
  • D: when the maturity structure of the assets in one currency is closely matched to the maturity structure of liabilities in another
Question 9

Which of the following are all goals of the originator of securitized assets?


  • A: to increase funding diversification , to reduce funding costs, to achieve regulatory and accounting benefits, to increase the size of the balance sheet
  • B: to increase funding diversification , to reduce funding costs, to achieve regulatory and accounting benefits
  • C: to increase funding diversification , to reduce operational risk, to achieve regulatory and accounting benefits, to decrease the size of the balance sheet
  • D: to increase funding diversification , to reduce operational risk, to achieve regulatory and accounting benefits, to increase the size of the balance sheet
Question 10

Which of the following risks are considered market risks?


  • A: interest rate, currency, equity and commodity risk
  • B: interest rate, currency, equity and default risk
  • C: interest rate, equity, liquidity and default risk
  • D: legal, reputation and regulatory risk



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