3I0-010 Practice Test & Exam Questions (Page 13 )

What are the communication channels most often used for investigations?

Answer(s): C

A counterparty pays your bank USD 10,000,000.00 5 days late requiring you to pay overdraft charges of 8% p.

What expenses would you claim from the counterparty in GBP at an exchange rate of 1.6000?
GBP 6,944.44
GBP 7,944.44
GBP 17,777.77
GBP 6,849.32

Answer(s): A

The use of a net open positions report:

can be used to show the counterparty the amounts it has to pay
can be used as the basis of reporting the banks position to the relevant central bank of the country concerned, against the limit granted for the bank
can be used as the basis of reporting the banks position to the relevant tax regulations office of the country concerned
can be used to adjust the country limits

Answer(s): B

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

to keep the multilateral limits updated
to invest funds at the highest available interest rate
to keep the balance or position of the accounts or nostros in each currency representing the accounts held by the bank's agents
to keep the management informed about interest rate developments

Answer(s): C

What is the disadvantage having separate cash accounts?

You need more back office staff to book the fees
One account could be overdrawn while the other has excess funds. The surplus balance would earn less interest than the amount being charged on the corresponding overdraft if an error occurs in settlement. Thus there is a risk of overdraft interest versus idle balances
One securities account could be overdrawn while the other has excess securities. The surplus balance would earn less interest, if any, than that being charged on the corresponding overdraft if an error occurs in settlement
The workload of the auditors, compliance officers, risk managers and dealers will be higher

Answer(s): B

ACI 3I0-010 Exam
3I0-010 ACI-Operations Certificate (Page 13 )