002-101 Dumps V8.02: Free ACI Dealing Certificate New Version Exam Questions (Part 1, Q1-Q40)

The ACI Dealing Certificate New Version Exam (002-101) serves as a stepping stone to the more advanced ACI Diploma. It is designed to establish foundational competence for financial market professionals, covering the core mechanics of foreign exchange, interest rates, commodities instruments, and adherence to industry standards like the FX Global Code. ACI 002-101 dumps (V8.02) from DumpsBase are carefully curated to help you learn the core knowledge points and essential exam topics. We have 192 practice questions and answers, which are well-structured to reflect real exam patterns. By learning these ACI Dealing Certificate New Version exam questions, you can quickly understand key concepts and focus on the areas that matter most. We have ACI 002-101 free dumps online, which are a free demo of the full version. Today, we will share the first part to help you test 40 free ACI Dealing Certificate New Version exam questions online.

Below are free ACI Dealing Certificate New Version Exam questions (Part 1, Q1-Q40), helping you verify the 002-101 dumps V8.02 today:

1. A cross rate is:

An exchange rate between two currencies calculated through a third currency

A rate fixed by an exchange only

A penalty rate charged on failed settlement

A repo rate against equity collateral

2. 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:

Forward-facing

Insider dealing

Front running

Ex ante trading

3. What needs to be done in the event that a trade is amended by one or both parties?

A new confirmation should be generated and the confirmation cycle should restart and continue until the trade is completely matched by both parties

A new confirmation should be generated by both parties but there is no need to restart the confirmation cycle

A new confirmation need not be generated but the confirmation cycle must restart and continue until the trade is completely matched by both parties

The amending party should verbally inform the other party

4. Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:

Forward-forward rate

All of the above

Implied rate

Break-even rate

5. Which of the following are transferable instruments?

US Treasury bill

Eurocertificate of deposit

CP

All of the above

6. You have written a EUR/USD knock-in option for a bank counterparty. At 6pm New York time on Friday, the in-strike point is breached and confirmed on screens. The counterparty contacts you to confirm that the option has been knocked in.

What should you do?

The recognised closing time for the currency markets is 5:00pm New York time on Friday, so no deal is done

The recognised closing time for the currency markets is 5:00pm New York time on Friday, so no deal is done

If the knock-in is confirmed by a New York price source, the deal is done and you should confirm with your counterparty

The deal is done and you should confirm with your counterparty

The recognised closing time for the currency markets is 6:00pm New York time on Friday, so the deal is done and you should confirm with your counterparty

7. What usually happens to the collateral in a tri-party repo?

It is held by the seller in the name of the buyer

It is held by the tri-party agent in the name of the buyer

It is put at the disposal of the buyer

It is frozen in the seller’s account with the tri-party agent

8. How can material divergences between the value of cash and collateral be managed in a documented sell/buy-back?

Margin maintenance

Either of the above, but usually re-pricing

Either of the above, but usually margin maintenance

Re-pricing

9. When differences in payment arise because of errors in the payment of funds:

No party involved can be enforced to contribute to achieve an equitable resolution to the problem

Claims are calculated on the full principal amount of the failed payment with the interest rate imposed by the injured party

Claims should be made for the costs incurred by the injured party and include all administration costs

No market participant should be unjustly enriched or injured by the action/error of another market participant

10. Dealers are authorized to deal:

Anywhere, even away from their own dealing premises

After-hours, but only from their private residence

After-hours, but only if listed as such by management

Away from their broker's dealing premises

11. What does the Model Code say concerning repos and stock-lending?

The exact maturity dates for transactions must be agreed as soon as possible after a transaction

All market participants should use the Modified Following Business Day Convention

Legal documentation must be put in place as soon as possible after a transaction

All market participants should use the Modified Previous Business Day Convention

12. The outright forward FX rate is not a function of which of the following?

The day count

Market expectation

The spot exchange rate

The interest rates of the two currencies

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

Changes only when interest rates levels are low

Positive

Negative

Changes only when interest rates levels are high

14. You have quoted a Swiss customer spot USD/CHF as 1.3710-15, but he asks you to quote it as CHF/USD.

What do you quote?

1.3710-15

0.7294-91

0.7291-94

None of these

15. What is the maximum maturity of a US Treasury bill?

5 years

270 days

One year

183 days

16. What is a normal shaped curve?

Flat

Steep positive slope

Inverted

Gradual positive slope

17. You borrow GBP 2,500,000.00 at 0.625% for 165 days.

How much do you repay including interest?

GBP 2,507,106.16

GBP 2,507,161.46

GBP 2,507,006.85

GBP 2,507,063.36

18. If GBP/USD is quoted at 1.2500-04, a customer selling GBP will deal at:

1.2504

1.2500

1.2540

1.2400

19. A money market deposit is best described as:

An unsecured placement or borrowing of funds for a fixed period

A contract giving the right to buy a currency

A physical exchange of securities only

A futures contract traded on a commodity exchange

20. Which of the following is most closely associated with settlement risk in FX?

One party pays away currency but does not receive the counter-currency

The option premium changes before expiry

The trade is entered into the wrong spreadsheet

The yield curve becomes flat

21. What is the minimum basis on which a BCP should be updated and tested?

Whenever the BCP procedures are changed

Every 3 months

Every 6 months

Yearly

22. You quote a price to a broker on EUR 100 million. Your price is hit for EUR 50 million.

What does the Model Code say about this situation?

You have a right to qualify your quotes in terms of amounts, if you do so when you make the price

You have a right to qualify your quotes in terms of amounts, once you have discovered the name of the counterparty for credit reasons

You have a right to qualify your quotes in terms of amounts

You have a right to qualify your quotes in terms of amounts, provided the amounts are marketable

23. Which of the following best describes an FX dealer’s “position”?

The outstanding net exposure in a currency

The dealer’s job title

The official fixing source only

The broker’s commission

24. What is the correct interpretation of a EUR 5,000,000.00 one-week VaR figure with a 99% confidence level?

A loss of at most EUR 5,000,000.00 can be expected in 1 out of the next 100 days

A loss of at least EUR 5,000,000.00 can be expected in 99 out of the next 100 weeks

A loss of at most EUR 5,000,000.00 can be expected in 1 out of the next 100 weeks

A loss of at least EUR 5,000,000.00 can be expected in 1 out of the next 100 weeks

25. Brokers should confirm all transactions:

Only if the transaction is not for a marketable amount

To both counterparties immediately by fax or other acceptable electronic means

Only if the deal is between overseas counterparties and for value today

Initially by fax or other acceptable electronic means, then in writing

26. When a broker needs to switch a name, this should be done:

Only after approval by the broker's senior management

Only if the switching transaction is done at the current market rate

Only after consultation with the local regulator

Only provided that such transactions are identified as switching transactions

27. Where answer phone equipment is used for reporting and recording of off-premises transactions, it should be:

Secured so that reported transactions cannot be erased without senior management approval

Secured by recordings that are stored for a suitable period

On a number located in the office of the internal auditor

On a special number known only to the chief dealer

28. How is a USD Overnight Indexed Swap settled?

Two days after maturity by net payment

Periodic exchange of fixed and floating payments up to and including maturity

After maturity by exchange of fixed and floating payments

At maturity by net payment

29. Confirmations should be sent out by both counterparties through an efficient and secure means of communication, preferably electronic:

Within two business days of the deal

Within 24 hours of the deal

Before the value date

As soon as possible

30. A dealer needs to buy USD against SGD. Of the following rates quoted to him, which is the best rate for him?

1.4320-25

1.4318-23

1.4315-20

1.4323-26

31. On fixing date, the settlement payment of an NDF reflects the differential between the agreed forward rate and:

The daily high

The day’s average rate

The fixing spot rate

The average rate over the NDF period

32. If EUR/USD is 1.1025-28 and the 6-month swap is 112.50/113, what is the 6-month outright price?

1.11375-1.1141

1.09125-1.0915

None of these

1.1380-1.11405

33. Which of the following statements about Credit Default Swaps is correct?

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

CDS are used to recover funds from defaulted swap counterparties

34. The bid-offer spread in an FX quotation mainly represents:

The dealer’s transaction margin and market liquidity conditions

The central bank official rate

The annual interest rate only

The tax rate on the currency

35. Which of the following is true regarding the consummation of a deal?

Written confirmations always override terms verbally agreed to

Verbal agreements are considered binding

Deals agreed to verbally can be done subject to documentation

Verbal agreements are never to be considered legally binding

36. 3-month USD/CHF is quoted at 12/10. Interest rates in Switzerland are reduced but USD rates, which are higher, are unchanged.

What would you expect the 3-month forward USD/CHF rate to be?

Unchanged

10/8

15/13

6/4

37. What do you call a combination of a long call option and short put option, or a short call option and long put option, with the same face value, same expiration date, same style, where the strike price is equal to the forward price?

A straddle

A synthetic forward

A strangle

Risk reversal

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

Borrowing long and lending short

Borrowing short and lending long

Paying a higher rate on deposits than the market

Increasing the bank’s leverage

39. When a broker calls off at the very instant a dealer hits the broker's price:

The transaction should not be concluded

The broker decides whether or not the deal is done

ACI's Committee for Professionalism will decide whether the transaction should be concluded

The transaction should be concluded

40. An FX outright forward rate is:

The spot rate adjusted by forward points

The central bank rate plus tax

The option strike minus premium

The repo rate minus haircut

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