ACI-Operations Certificate Set 1

1.

Under normal circumstances, which of the following is a non-negotiable instrument?

a Medium Term Note a Bankers Acceptance a Money Market Deposit a Treasury Bill

2.

Your money market dealer has lent GBP 5,000,000.00 at 4 3/4% for 6 months (183 days). How much must the counterparty pay back to you in capital plus accrued interest at maturity?

GBP 5,117,123.29 GBP 5,119,075.00 GBP 5,119,075.34 GBP 5,120,729.17

3.

Today is the fixing date for 6x9 FRA that you sold at 5.50% and for which the FRABBA LIBOR is now 6.00%. Which of the following is true?

You will pay a cash settlement to the counterparty You will receive the cash settlement There is no cash settlement pending There is insufficient information to make a determination

4.

The notional amount in an interest rate swap is:

the sum of all the fixed and floating rate payments the net difference between fixed and floating rate payments the principal amount on which floating and fixed interest payments is calculated the amount at which the two counterparties can close-out their transaction

5.

What does modified following business day convention mean?

a convention 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 a convention whereby a transaction is dated the following business day a convention whereby a transaction is dated the preceding business day a convention whereby a transaction is dated the next business day that corresponds to the same numerical day of the month as the preceding payment

6.

What is volatility?

the difference between the current price of an asset and its previous close a statistical measure of price fluctuations as an annualized percentage the measure of the liquidity of a contract or security the difference between the annual high and low of a security

7.

What does ISDA stand for?

International Swaps and Derivatives Association Integrated System Data Association International Swap Derivatives Agreement Informative Software for Dealing Activities

8.

What is a tick in the futures markets?

the maximum daily price change permissible on the futures exchange a temporary suspension of trading at a futures exchange the initial margin requirements at a futures exchange the minimum price movement defined by the futures exchange

9.

What does LIBOR stand for?

London Interbank Overseas Rate London Interbank Offered Rate Lending Interbank Offered Rate Leading Interbank Basis Offered Rate

10.

If today is Thursday, 12 December, what is the spot date for a EUR/USD transaction?

16-Dec 17-Dec 18-Dec 19-Dec

ACI-Operations Certificate Set 1

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Congratulations

COMPANY

Products

OTHERS

Partner

ACI-Operations Certificate Set 1

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Answer & Solution

Answer: Option B

Solution:

Congratulations

Detail Form

COMPANY

Products

OTHERS

Partner