Free 3I0-012 Exam braindumps download (3I0-012 exam dumps Free)

Which of the following statements about Credit Default Swaps (CDS) is correct?

CDS are used to recover funds from defaulted swap counterparties.
CDS provide protection against specified credit events to the party receiving the CDS premium payments.
CDS provide protection against the default of the trade counterparty that buys the CDS.
CDS provide compensation to the protection buyer, should a specified credit event occur to a third party entity.

Answer(s): D

Which of the following is not the responsibility of the asset and liability committee (ALCO)?

ensure that compliance is carried out efficiently
set limits on borrowing in the short-term markets to fund long-term lending
develop, evaluate, monitor and approve strategies related to risk due to imbalances in the asset and liability structure of the balance sheet
report to the board of directors

Answer(s): C

Which of the following is part of the typical scope of Asset Liability Management (ALM)?

Selling distressed assets and investing in bank liabilities trading at distressed levels.
Making sure that fixed assets are depreciated according to the applicable tax code.
Planning the maturity structure and net funding requirements arising from banking book and trading book transactions.
Planning the liability structure and net funding requirements arising from trading book assets carried at amortized cost.

Answer(s): C

All other things being equal, if a bank borrows short and lends long what is the effect on the liquidity risk of the bank?

Answer(s): C

A transaction that entails market price risks may be entered into in the absence of a market price risk limit...

Answer(s): D

Free 3I0-012 Exam Braindumps 3I0-012 ACI Dealing Certificate Questions 311–315 (page: 64)