ACI Dealing Certificate: 3I0-012

A bank quotes a spot rate that is verifiably incorrect and deviates substantially from the prevailing market rate.

A. you should hit the price and hold the bank to the quoted incorrect rate, as the quoted party is entitled to hold the quoting party to an erroneous rate

B. you should ask the dealer to check his price, as it is highly unethical for one party to hold another to an erroneously agreed rate

C. you should point out the mistake and split the difference

D. you should keep on dealing with this bank until the mistake is rectified

Which of the following are transferable instruments?

A. Eurocertificate of deposit

B. US Treasury bill

C. CP

D. All of the above

To curb attempted fraud, banks should:

A. Require greater vigilance by the management and staff.

B. Take particular care when the beneficiary is a third party to the deal.

C. Ensure that details of all telephone deals which do not include pre-agreed standard settlement instructions are confirmed by telex or similar means without delay.

D. All of the above.