ACI 3I0-013 Certification Exam Material - Free Download and Guaranteed Pass

ACI 3I0-013 Certification Exam Material - Free Download and Guaranteed Pass



Exam code : 3I0-013

Exam name : ACI Operations Certificate challenging



You take a EUR deposit on Monday, 13 February. Assuming there are no intervening bank

holidays, what is the one-month maturity date?

A. Monday, 13 March

B. Tuesday, 14 March

C. Wednesday, 15 March

D. Thursday, 16 March

Answer: C

A broker:

A. Is an agent who mediates between buyers and sellers, for their mutual financial interest

B. Controls country limits in cooperation with the compliance officer

C. Is responsible for reducing transaction fees

D. Acts as a correspondent bank

Answer: A

What does“modified following business day convention”mean?

A. Aconvention whereby a transaction is dated the following business day, unless that day

extends into the next month, in which case it is dated the preceding business day

B. Aconvention whereby a transaction is dated the following business day

C. Aconvention whereby a transaction is dated the preceding business day

D. Aconvention whereby a transaction is dated the next business day that corresponds to

the same numerical day of the month as the preceding payment

Answer: A

What does ISDA stand for?

A. International Swaps and Derivatives Association

B. Integrated System Data Association

C. International Swap Derivatives Agreement

D. International Swaps Dealer Association

Answer: A

What is volatility?

A. The difference between the current price of an asset and its previous close

B. Astatistical measure of price fluctuations as anannualizedpercentage

C. The measure of the liquidity of a contract or security

D. The difference between the annual high and low of a security

Answer: B

Which SWIFT message formats would you use for a foreign exchange confirmation and

fixed money market confirmation, respectively?

A. MT400,MT950

B. MT 200, MT 100

C. MT300,MT950

D. MT 300, MT 320

Answer: D

When do you use a SWIFT message type 202?

A. For a foreign exchange confirmation

B. For multiple general financial institution transfers

C. For a general financial institution transfer

D. For a customer transfer

Answer: C

In the unexpected event that a public holiday is declared on the date a particular contract

matures, what is the normal market practice?

A. If that day is not the final trading day of the month, all contracts maturing on that day are

extended to the next business day

B. If that day is not the final trading day of the month, all contracts maturing on that day are

shortened to the preceding business day

C. All new maturity dates have to be agreed upon with the counterparties involved

D. Decisions about the maturity dates of trading contracts are made by ACI’s Committee

for Professionalism on a case-by-case basis and must be adhered to

Answer: A

How are accounting entries usually generated?

A. They are generated based on a code profile held for each product type on a time event

basis.B.They are generated based on a code profile held for each front office staff member.

B. They are generated based on the nature of instruments (debits = first priority / credits =

second priority).

C. They are generated in the morning at start of business when there is no direct link to

other systems.

Answer: A

What is a SWIFT message type 210?

A. Arequest for financial institution transfer

B. Ageneral financial institution transfer

C. Afinancial institution transfer for its own account

D. Anotice to receive

Answer: D

What is done with counterparties’confirmations?

A. They are scanned for money laundering activities and afterwards destroyed

B. They are forwarded to the deal capturer to check the completeness of the deal

C. They are matched as soon as possible after receipt

D. They are archived after reception

Answer: C

What is the purpose of“internal cash reconciliation”?

A. To control the bank’s cash and derivative positions

B. To reconcile and control the cash balance for the Bank for International Settlements

(BIS)

C. To reconcile and control the cash balance for the central bank

D. Cash forecasting, cash collateral and cash positions control

Answer: D

What information is essential for an interbank FX confirmation?

A. Specification of the applicable law

B. The value date

C. The brokerage cost

D. The name of the person(s) originating the deal

Answer: B

What is the most frequently used settlement process for securities?

A. Free of settlement payment

B. Cash settlement

C. Same day value settlement

D. Delivery-versus-payment

Answer: D

Which of the following types of payment demands extra diligence and review procedures?

A. Nostro funding payment

B. Third party payment

C. Value spot USD payment

D. Value spot payment for currency equivalents> USD 3,000,000.00

Answer: B

Which of the following best describes TARGET2?

A. The real-time gross settlement (RTGS) system owned and operated by the Eurosystem

B. The system used in Germany for settling high value domestic securities transactions

C. The pan-Europe netting system used for reducing credit risk for derivative transactions

D. The system used by the European Banking Federation to clear cross border Euro

payments

Answer: A

What is a settlement date?

A. The date by which the interest payment on an operation must be made

B. The last date by which the minimum reserve amount can be paid to the central bank

C. The date, on which settlement must be made on the contracted amount or the

differential amountof an operation

D. The date a deal is processed

Answer: C

What is the main difference between TARGET and TARGET2?

A. Finland did not participate in TARGET but it does participate in TARGET2

B. The cut-off time for TARGET2 is 20:00 (8.00 p.m.) CET, whereas the cut-off time for

TARGET was 18:00(6.00 p.m.) CET

C. TARGET2 runs on a single shared technicalplatform whereas TARGET did not

D. TARGET2 processes payment orders denominated in EUR as well as USD

Answer: C

Which of the following best describes the main benefit of the RTGS payment system?

A. Final settlement of interbank funds transfers on a continuous, trade by trade basis

throughout the day

B. Lower costs through fewer payments passing through nostro accounts

C. Lower costs through lesslaborintensive methods

D. Reduced market risk due to smaller values of open positions

Answer: A

A payment is made from Germany to a second Euro zone country. Which international

payment system would normally be used?

A. TARGET2

B. Euro Link System (ELS)

C. Euroclear

D. Clearstream

Answer: A

What are the principal functionalities of interbank funds transfer systems?

A. The matching of confirmations

B. The dealing and archiving of payment orders

C. Reconciliation and correspondent banking

D. The transfer of information and settlement

Answer: D

Which of the following currencies is eligible for CLS settlement?

A. ZAR

B. TRY

C. MYR

D. CNY

Answer: A

A message received and accepted by SWIFT will be acknowledged with:

A. OK

B. ACK

C. MAK

D. NAK

Answer: B

Which of the following processes are offered by the CLS settlement system?

A. The close-out process

B. The customer matching process

C. The settlement process

D. The securities lending process

Answer: C

CHIPS is the name commonly used for the domestic clearing system in:

A. London

B. Frankfurt

C. New York

D. Hong Kong

Answer: C

You have five outstanding amounts with five different values. Which of the following should

be investigated first?

A. The most recently processed deal

B. The counterparties in your own country

C. The counterparty which claims first

D. Those positions with the highest loss potential

Answer: D

What is the primary role of the position-keeper in a dealing room?

A. To keep the multilateral limits updated

B. To invest funds at the highest available interest rate

C. To keep the balance or position of the accounts or nostros in each currency

representing the accounts held by the bank’s agents

D. To keep the management informed about interest rate developments

Answer: C

What is an essential feature of nostro reconciliations?

A. That a daily nostro reconciliation report is sent out to the correspondent bank

B. That they are performed before the next business day

C. That they are performed in a timely and efficient way

D. That open items are booked on an internal account

Answer: C

You have two nostro accounts in USD, one account is long USD 5,000,000.00 and the

other is short USD 5,000,000.00. What action should be taken to reconcile the accounts?

A. No action is required. The credit interest earned on the credit balance will offset the

debit interest incurred on the short balance

B. You should borrow USD 5,000,000.00 to cover the short balance and leave the long

balance as itis

C. You should lend the surplus USD 5,000,000.00 in order to compensate the overdraft

charges on the short balance with the interest earned on the loan

D. You should instruct the bank with the long balance to transfer USD 5,000,000.00 to your

nostro account at the other bank

Answer: D

Which kind of report is a reconciliation system unable to produce?

A. A“probable matched items report”(a report in which most fields match but there are

some discrepancies)

B. A“calculated fees report”(a report of the expected fees owed)

C. A“matched items report”(a report of all fields that match)

D. An“unmatched items report”(a report of items for which one is unable to find matches)

Answer: B