Confidently Practice Online with Free 002-201 Exam Cram

Practice your ACI Operations Certificate New Version Exam certification test with free 002-201 exam cram and take control of your certification preparation. At FreeExamCram, you can practice online for free using real 002-201 exam dumps, verified questions, and expert-designed free online practice tests. Moreover our ACI 002-201 exam cram backed by our confidence-boosting refund guarantee.

Question 1

EURIBOR, the Euro Interbank Offered Rate is:

Options :

A : the rate at which Euro interbank term deposits are offered by one prime bank to another prime bank published at 11.00 a.m. CET

B : the interest reference rate for the Euro calculated daily from the rates of 16 London banks

C : the interest reference rate for all major currencies calculated daily from the rates of panel banks from EU countries

D : the rate at which Euro interbank term deposits are offered by prime banks to corporate published at 11.00 a.m. CET

Answer: A

Question 2

What financial product involves exchanging a fixed interest rate for a floating interest rate?

Options :

A : A FX Swap

B : A repurchase agreement

C : An interest rate swap (IRS)

D : A dual swaption

Answer: C

Question 3

Some large losses occurred in the past from derivatives trading because:

Options :

A : Derivatives brokers significantly over-charged their clients

B : Institutions did not understand the leverage of their transactions

C : Money managers engaged in intra-day trading

D : Money managers embezzled money using derivatives

Answer: B

Question 4

Herstatt Risk is also known as:

Options :

A : settlement risk

B : translation risk

C : replacement risk

D : operational risk

Answer: A

Question 5

Bank A has a large number of forward OTC trades with Bank B. What risks will be reduced by concluding a netting agreement?

Options :

A : market-price-risk and replacement risk

B : market-price-risk and delivery risk

C : replacement risk and delivery risk

D : replacement risk and basis risk

Answer: C