3I0-013

3I0-013 practice questions, page 6 of 16, with answer review and explanations.

Question 26

You have five outstanding amounts with five different values. Which of the following should be investigated first?

  1. The most recently processed deal
  2. The counterparties in your own country
  3. The counterparty which claims first
  4. Those positions with the highest loss potential

Question 27

What is the primary role of the position-keeper in a dealing room?

  1. To keep the multilateral limits updated
  2. To invest funds at the highest available interest rate
  3. To keep the balance or position of the accounts or nostros in each currency representing the accounts held by the bank’s agents
  4. To keep the management informed about interest rate developments

Question 28

What is an essential feature of nostro reconciliations?

  1. That a daily nostro reconciliation report is sent out to the correspondent bank
  2. That they are performed before the next business day
  3. That they are performed in a timely and efficient way
  4. That open items are booked on an internal account

Question 29

You have two nostro accounts in USD, one account is long USD 5,000,000.00 and the other is short USD 5,000,000.00. What action should be taken to reconcile the accounts?

  1. No action is required. The credit interest earned on the credit balance will offset the debit interest incurred on the short balance
  2. You should borrow USD 5,000,000.00 to cover the short balance and leave the long balance as it is
  3. You should lend the surplus USD 5,000,000.00 in order to compensate the overdraft charges on the short balance with the interest earned on the loan
  4. You should instruct the bank with the long balance to transfer USD 5,000,000.00 to your nostro account at the other bank

Question 30

Which kind of report is a reconciliation system unable to produce?

  1. A “probable matched items report” (a report in which most fields match but there are some discrepancies)
  2. A “calculated fees report” (a report of the expected fees owed)
  3. A “matched items report” (a report of all fields that match)
  4. An “unmatched items report” (a report of items for which one is unable to find matches)