Free 3I0-013 Exam Braindumps (page: 47)

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«Illiquid» describes an instrument which:

  1. Does not trade in an active market
  2. Does not trade on any exchange
  3. Cannot be easily hedged
  4. Is an over-the-counter (OTC) product

Answer(s): A



You are in the pub with a friend who works for another financial institution. The friend asks you for information about a mutual customer's forward foreign exchange dealing volumes. What should you do?

  1. Tell him all you know
  2. Tell him nothing
  3. Give him some of the information because the deal involves a mutual customer
  4. Tell him you will investigate and get back to him with the information

Answer(s): B



What are the consequences for credit risk when a collateral agreement is added to a netting agreement?

  1. A collateral agreement eliminates the future replacement risk
  2. A collateral agreement can reduce market risk
  3. A collateral agreement can reduce operational risk
  4. A collateral agreement can reduce the replacement risk

Answer(s): D



As far as interest rate swaps are concerned, which risk is reduced or eliminated when a close-out netting agreement is in place?

  1. Replacement risk
  2. Volatility risk
  3. Commercial risk
  4. Market risk is reduced to a predefined amount

Answer(s): A






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