Free 3I0-012 Exam Braindumps (page: 4)

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What is the maximum maturity of an unsecured USCP?

  1. One year
  2. 270 days
  3. 183 days
  4. 5 years

Answer(s): B



Which party usually takes an initial margin in a classic repo?

  1. The buyer
  2. The seller
  3. Neither
  4. Both

Answer(s): A



What are the primary reasons for taking an initial margin in a classic repo?

  1. Counterparty risk and operational risk
  2. Counterparty risk and legal risk
  3. Collateral illiquidity and counterparty risk
  4. Collateral illiquidity and legal risk

Answer(s): C



What happens when a coupon is paid on bond collateral during the term of a classic repo?

  1. Nothing
  2. A margin call is triggered on the seller
  3. A manufactured payment is made to the seller
  4. Equivalent value plus reinvestment income is deducted from the repurchase price

Answer(s): C






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