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3I0-012 Exam Dumps : ACI Dealing Certificate

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ACI Dealing Certificate Questions and Answers

Question 1

When an employee executes a personal trade in advance of a client’s or institution’s order to benefit from the anticipated movement in the market price following the execution of a large trade, it is called:

Options:

A.

front running

B.

ex ante trading

C.

insider dealing

D.

forward-facing

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Question 2

Banks have a fiduciary responsibility to ensure that clients have all necessary information to understand the transaction because this:

Options:

A.

Will encourage clients to do more business.

B.

Will help prevent potential litigation.

C.

Will help banks sell sophisticated risk management solutions.

D.

Is required by all regulators.

Question 3

Hybex Electrics is a highly rated company with a considerable amount of fixed rate liabilities and would like to increase the percentage of floating rate debt. Which of the following is the best course of action?

Options:

A.

Hybex should become a payer of a fixed rate on a swap against receipt of LIBOR.

B.

Hybex should become a receiver of a floating rate on a swap against payment of a fixed rate

C.

Hybex should become a receiver of a fixed rate on a swap against payment of LIBOR D.

D.

Hybex should become a receiver of a floating rate on a swap against payment of LIBOR