Free ACI 002-101 Exam Questions

Become ACI Certified with updated 002-101 exam questions and correct answers

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Total 420 Questions | Updated On: Oct 29, 2025

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Question 1

Which of the following statements about Credit Default Swaps (CDS) is correct?

A : provide protection against specified credit events to the party receiving the CDS premium payments.

B : provide protection against the default of the trade counterparty that buys the CDS.

C : provide compensation to the protection buyer, should a specified credit event occur to a third party entity.

D : are used to recover funds from defaulted swap counterparties.

Answer: C

Question 2

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

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

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

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

Answer: D

Question 3

If GBP/USD is 1.5350-53 and USD/JPY is 97.50-53, what is GBP/JPY?

A : 63.52-53

B : 149.66-74

C : 63.51-54

D : 149.69-71

Answer: B

Question 4

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

A : anges only when interest rates levels are low

B : itive

C : gative

D : anges only when interest rates levels are high

Answer: C

Question 5

A dealer in the spot foreign exchange market has to assume that a price given to a voice broker is only valid:

A : til the price has been taken off' by the dealer'

B : r a short length of time, usually 30 seconds

C : r a short length of time, typically a matter of seconds

D : r a minute or two

Answer: C

Page: 1 / 84

Total 420 Questions | Updated On: Oct 29, 2025

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