Money Markets

Risk management is heavily tested and often underestimated. Market risk, credit risk, liquidity risk and operational risk must be clearly distinguished. Tools such as VaR, limits and stress testing appear frequently. These sections reward clarity, not calculation. Liquidity risk refers to: A. Default risk B. Market volatility C. Inability to fund or exit positions D. Operational failure ✅ Answer: C

For many candidates, the Derivatives section of the ACI Dealing Certificate can seem intimidating. Terms such as futures, swaps and options often sound complex, leading candidates to expect difficult calculations and advanced mathematics. Fortunately, the reality is much simpler. The ACI exam focuses on understanding how these instruments work, why market participants use them, and how they help manage financial risk. Futures: Locking in Future Prices A futures contract is an

What Every ACI Dealing Certificate Candidate Must Know The Money Market section of the ACI Dealing Certificate is not conceptually difficult. But it is mechanically unforgiving. Candidates rarely fail because they don’t understand what a deposit is. They lose marks because they: Apply the wrong day count Misprice discount instruments Confuse yield and discount rates Forget settlement conventions Let’s simplify this properly. 1️⃣ What Is the Money Market? The money market deal