ACI 3I0-012 Exam Questions
3I0-012 ACI Dealing Certificate (Page 30 )

Updated On: 19-Feb-2026

Prudential regulation of banking book liquidity risk is dealt with by the Basel Committee (Basel II / Basel III) in the context of:

  1. capital adequacy regulations in Pillar 1
  2. market risk and Tier 3 capital elements
  3. internal management procedures subject to supervisory review in Pillar 2
  4. market discipline, disclosure and transparency in Pillar 3

Answer(s): B



VaR increases with:

  1. lower correlation of underlying risk factors
  2. a shorter time horizon
  3. a lower confidence level
  4. a higher confidence level

Answer(s): C



Under Basel Rules, the Basic Indicator Approach is a regulatory framework for:

  1. liquidity risk
  2. business risk
  3. operational risk
  4. funding risk

Answer(s): B



Under Basel rules, expected credit loss is a function of which of the following sets of parameters:

  1. 1 minus recovery rate, probability of default and exposure at default
  2. exposure at origination, exposure at default and loss given default
  3. loss given default, 1 minus recovery rate and exposure at default
  4. exposure at origination, recovery rates and probability of default

Answer(s): B



Under Basel rules the risk weight for claims on unrated sovereigns and their cennl banks in the standardized approach is:

  1. 75%
  2. 100%
  3. 150%
  4. 350%

Answer(s): D






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