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Exactprep 3I0-012 Questions

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Question 68

A customer gives you GBP 25,000,000.00 at 0.625% same day for 7 days.

Through a broker, you place the funds with a bank for the same period at 0.6875%.

Brokerage is charged at 2 basis points per annum.

What is the net profit or loss on the deal?

Options:

A.

ProfitofGBP 299.66

B.

Profit of GBP 203.77

C.

LossofGBP299.66

D.

Loss ofGBP 203.77

Question 69

Which of the following will tend to have the lowest yield?

Options:

A.

Interbank deposit

B.

Certificate of deposit

C.

Treasury bill

D.

BA

Question 70

If the yield curve is upward sloping, a bank would not profit from:

Options:

A.

borrowing short and lending long

B.

borrowing long and lending short

C.

paying a higher rate on deposits than the market

D.

increasing the banks leverage

Question 71

Which of the following statements regarding economic capital is correct?

Options:

A.

Economic capital is calculated externally and is the amount of capital the firm should have to support its target credit rating

B.

Economic capital is calculated on an expected shortfall basis with a specific time horizon and confidence level.

C.

Economic capital is used for measuring and reporting risks across a financial organisation.

D.

Economic capital is always lower than regulatory capital because of the more adequate modelling of correlation effects compared to the regulatory approach.

Page: 17 / 27
Exam Code: 3I0-012
Exam Name: ACI Dealing Certificate
Last Update: Mar 29, 2024
Questions: 740
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