Free Practice ACI 002-101 Exam Questions 2025

Stay ahead with 100% Free ACI Dealing Certificate New Version Exam 002-101 Dumps Practice Questions

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Total 420 Questions | Updated On: Apr 22, 2025

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Question 1

You borrow GBP 2,500,000.00 at 0.625% for 165 days. How much do you repay including interest?

A : GBP 2,507,106.16

B : GBP 2,507,161.46

C : GBP 2,507,006.85

D : GBP 2,507,063.36

Answer: D

Question 2

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

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

B : Secured by recordings that are stored for a suitable period.

C : On a number located in the office of the internal auditor.

D : On an special number known only to the chief dealer.

Answer: A

Question 3

In a plain vanilla interest rate swap, the fixed-rate payer":"

A : has established the price sensitivities of a longer-term fixed-rate asset and a floating-rate liability

B : has established the price sensitivities of a longer-term fixed-rate liability and a floating-rate asset

C : pays floating in the swap

D : receives fixed in the swap

Answer: B

Question 4

What is the effect of netting?

A : To reduce the size of the balance sheet

B : To reduce the number and size of payments and transfers

C : All of the above

D : To reduce exposure to credit risk

Answer: C

Question 5

You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10 million interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 4.95%. How would you hedge the swap using FRAs? How to hedge an IRS with a strip of FRAs?

A : sell a strip of 0x6, 6x12, 12x18 and 18x24 FRAs

B : buy a strip of 6x12, 12x10 and 16x24 FRAs

C : buy a strip of 0x6, 6x12, 12x18 and 18x24 FRAs

D : sell a strip of 6x12, 12x18 and 18x24 FRAs

Answer: D

Page: 1 / 84

Total 420 Questions | Updated On: Apr 22, 2025

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