ACI 002-201 ACI Operations Certiļ¬cate New Version Exam QUESTION & ANSWERS https://www.genuinedumps.com/002-201-exam-questions.html QUESTION 1 An input message for the SWIFT network is composed of up to which five parts? A. 1. Basic header block, 2. Communication header block, 3. Currency block, 4. Text block, 5. Trailers block B. 1. Basic header block, 2. Application header block, 3. User header block (optional), 4. Text block, 5. Trailers block C. 1. Sending header block, 2. Application header block, 3. User header block, 4. Text block (optional), 5. Transmission block D. 1. Basic header block, 2. System header blocks (optional), 3. User header block, 4. Text block, 5. Security block Correct Answer: B QUESTION 2 In the absence of his normal dealer contact, a counterparty calls the back office and asks the clerk for his opinion about how long his money should be placed on deposit. What action should the back office clerk take? A. He should give his opinion B. He should give his opinion and tell the counterparty that he is not qualified to do so. C. He should tell the counterparty that he is not qualified to give an opinion and refer the counterparty to another dealer D. He should give his opinion and refer the counterparty to another dealer Correct Answer: C QUESTION 3 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 https://www.genuinedumps.com/002-201-exam-questions.html Correct Answer: A QUESTION 4 Which interest rate is to be applied in the calculation methodology for back-valuations in EUR? A. B. C. D. The flat ECB marginal lending facility rate The ECB marginal lending facility rate plus 25 b.p. The average of each day’s EONIA rate minus 25 b.p. The average of each day’s EONIA rate plus 25 b.p. unless that is higher than the ECB marginal lending facility rate Correct Answer: D QUESTION 5 Which of the following is an example of a foreign currency nostro account from the perspective of a bank in London? A. B. C. D. a GBP account with another UK bank a CHF account with a bank in Zurich a CHF account that it holds for a customer in London a GBP account that it holds for a bank in New York Correct Answer: B QUESTION 6 A Luxembourg based bank, which regularly buys American securities for its customers, will preferably: A. B. C. D. buy the American securities directly on the NYSE open a bank account in the United States open an account in a bank in the U.S. that has an account at the NYSE buy the securities directly in Luxembourg https://www.genuinedumps.com/002-201-exam-questions.html Correct Answer: C QUESTION 7 What is a bank required to do when entering into a new business relationship with a natural person? A. B. C. D. inform the central bank of their country no action is required verify the identity of the person inform the compliance department Correct Answer: C QUESTION 8 If a dealer buys 1 million EUR/USD at 1.1122, 2 million EUR/USD at 1.1132, 3 million EUR/USD at 1.1175 and sells 1 million EUR/USD at 1.1185, what position is he left with? A. B. C. D. Long 5 million EUR/USD at 1.1156 Long 5 million EUR/USD at 1.1145 Short 5 million EUR/USD at 1.1156 Short 5 million EUR/USD at 1.1145 Correct Answer: B QUESTION 9 Which of the following is an example of market risk? A. B. C. D. counterparty risk country risk settlement risk stock price risk Correct Answer: D https://www.genuinedumps.com/002-201-exam-questions.html QUESTION 10 What is the meaning of "good value" in FX? A. the funds must be in the nostro account of the beneficiary institution by close of business on the agreed upon value date B. the funds must be in the nostro account of the beneficiary institution by the beginning of the next business day C. the value of interest to be received is higher than the value of fees to be paid D. the funds must be in the internal cash account of the clearing house by close of business on the agreed upon value date Correct Answer: A QUESTION 11 The calculation method of the foreign exchange rates for value today or for value tomorrow outrights: A. B. C. D. is based on the interest rate differential between the two currencies is based on the same calculation method as the forward rate agreements (FRA) is based on linear interpolation is based on the calculation of compound interest rates Correct Answer: A QUESTION 12 Which of the following trades involves replacement risk? A. B. C. D. the purchase of shares through Deutsche-Brse-Clearing (payment against delivery) the purchase of an OTC call option the taking of call money a long position in Bund futures Correct Answer: B https://www.genuinedumps.com/002-201-exam-questions.html QUESTION 13 The interest rate below which the coupon for a FRN may not be fixed is called the: A. B. C. D. variable rate fixed rate floating rate minimum or floor rate Correct Answer: D QUESTION 14 The interest earned on a USD 5,000,000.00 money market deposit for 90 days is USD 62,500.00. What was the interest rate? A. B. C. D. 5.07% 5.06% 4.93% 5.00% Correct Answer: D QUESTION 15 The "value date" is best described as: A. B. C. D. The date a trade is undertaken The date the fixing rate is agreed upon The date the settlement occurs The date confirmations are exchanged between counterparties Correct Answer: C QUESTION 16 What is the main difference between TARGET and TARGET2? https://www.genuinedumps.com/002-201-exam-questions.html 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 technical platform whereas TARGET did not D. TARGET2 processes payment orders denominated in EUR as well as USD Correct Answer: C QUESTION 17 What does “modified following business day convention” mean? A. 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 B. A convention whereby a transaction is dated the following business day C. A convention whereby a transaction is dated the preceding business day D. 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 Correct Answer: A QUESTION 18 A middle or back office clerk receives an FX ticket in which the counterparty is not clearly identified. What should he/she do? A. B. C. D. Keep the ticket in “stand-by mode” until a matching confirmation is received Immediately refer the ticket to the compliance officer Refer the ticket to the FX dealer for further details Refer the ticket to the nostro account manager for further instructions Correct Answer: C QUESTION 19 Which interest rates are used to calculate the exchange rate of an outright transaction value tomorrow (over tom)? https://www.genuinedumps.com/002-201-exam-questions.html A. B. C. D. The overnight interest rates of both currencies The spot next interest rates of both currencies The one week interest rates of both currencies The torn next interest rates of both currencies Correct Answer: D QUESTION 20 The tenor of a bill of exchange describes: A. B. C. D. the original rate of the bill the rate at which the bill is bought the time to maturity of the bill the date on which the bill matures Correct Answer: C QUESTION 21 The difference between the bid and the offer rate of a money market quotation is called: A. B. C. D. the margin the spread the variation the premium Correct Answer: B QUESTION 22 Which SWIFT message type is a nostro cash reconciliation software package based on? A. B. C. D. SWIFT message type 300 SWIFT message type 292 SWIFT message type 571 (i.e. a statement of holdings) SWIFT message types 940 and 950 (i.e. a statement of account) https://www.genuinedumps.com/002-201-exam-questions.html Correct Answer: D QUESTION 23 What deals are usually associated with a collar? A. B. C. D. A purchase of a cap and a sale of a cap at higher reference rate A purchase of a floor and a sale of a cap or vice versa A purchase of a cap and a purchase of a floor A purchase of a step-up cap and a sale of a step-down floor Correct Answer: B QUESTION 24 You have received the requisite notification from a non-swapping counterparty that their USD correspondent is to be changed from Bank A to Bank B taking effect from value date 15 June 2012. On 14 June 2012, you buy JPY 50 million from your counterparty against USD for value spot. Whom do you pay the USD? A. B. C. D. bank A bank B neither bank A nor bank B both bank A and bank B Correct Answer: B QUESTION 25 In hedging, caps are A. B. C. D. frequently purchased by issuers of floating rate debt frequently sold by issuers of floating rate debt frequently sold by issuers having an FX risk frequently purchased by issuers having an FX risk https://www.genuinedumps.com/002-201-exam-questions.html Correct Answer: A QUESTION 26 Which clearing system allows a transfer to be settled with immediate finality? A. B. C. D. EAF EBA RTGS SWIFT Correct Answer: A QUESTION 27 Calculation basis for EUR money market transaction is: A. B. C. D. 30/360 ACT/365 ACT/ACT ACT/360 Correct Answer: D QUESTION 28 Which of the following is a negotiable instrument? A. B. C. D. a fixed time deposit an on call deposit a fiduciary deposit a certificate of deposit Correct Answer: D https://www.genuinedumps.com/002-201-exam-questions.html QUESTION 29 A USD 1 million US Treasury Bill (91 days) is offered at a discount rate of 5.50%. The offer price will be: A. B. C. D. USD 1,000,000.00 USD 986,097.22 USD 945,000.00 USD 986,287.67 Correct Answer: B QUESTION 30 You suspect that a colleague is guilty of embezzlement. What should you do? A. B. C. D. keep the information to yourself tell your supervisor tell your work-mates but not your supervisor talk to the colleague in question Correct Answer: B QUESTION 31 Why should the maturity profile of unreconciled items be frequently reviewed? A. It allows the compliance officer to see how often the reconciliation staff has claimed for an outstanding item B. It allows management to see what items are pending by value and counterparty, but also how long items have been outstanding and whether there is an improvement in the pace of reconciliations. C. It allows reconciliation staff to check the bilateral limits with counterparties and to adjust these limits as necessary D. because the most recent figures have to be published in the balance report Correct Answer: B https://www.genuinedumps.com/002-201-exam-questions.html https://www.genuinedumps.com/002-201-exam-questions.html
