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Key Facts: ACI Diploma Exam

100

Multiple-Choice Questions

ACI FMA

3 hours

Exam Duration

ACI FMA

60%

Passing Score

ACI FMA

ACICMP®

Professional Designation

ACI FMA

5 areas

Syllabus Modules

ACI FMA Syllabus

Physical

Test Center Testing Only

ACI FMA Policies

The ACI Diploma exam consists of 100 multiple-choice questions with a 3-hour time limit. It costs 370 EUR for ACI members and 420 EUR for non-members. The passing score is 60%. The exam targets senior foreign exchange and money market dealers, corporate treasurers, and risk managers. It tests advanced competencies in FX/commodity markets, interest rate yield curves, linear swaps/FRAs, option pricing/Greeks, and risk governance/VaR.

Sample ACI Diploma Practice Questions

Try these sample questions to test your ACI Diploma exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following currency pairs typically settles on a T+1 basis for spot transactions under normal market conditions?

A.EUR/USD

B.USD/JPY

C.USD/CAD

D.GBP/USD

Explanation: While most major currency pairs settle on a spot basis of T+2 (two business days after the trade date), USD/CAD is a notable exception that settles on T+1. This T+1 convention for USD/CAD is due to the geographic proximity and overlapping banking hours between the US and Canadian financial markets. EUR/USD, USD/JPY, and GBP/USD all follow the standard T+2 spot settlement rule.

2In the London gold market, spot transactions are typically settled on which basis?

A.T+1

B.T+2

C.T+3

D.T+5

Explanation: Spot transactions in the London precious metals market, including gold and silver, settle on a T+2 basis (two business days after the trade date). This aligns precious metals spot settlement with the standard foreign exchange spot settlement convention. T+1 is used for certain specific cash instruments or some local markets, but T+2 is the standard for international spot gold.

3If a currency's interest rate is higher than that of the base currency, the forward exchange rate for that currency will be at a:

A.Premium relative to the spot rate

B.Discount relative to the spot rate

C.Parity relative to the spot rate

D.Spread relative to the spot rate

Explanation: According to covered interest parity, the currency with the higher interest rate will trade at a forward discount relative to the currency with the lower interest rate. This discount compensates investors for the interest differential, preventing risk-free arbitrage. Conversely, the currency with the lower interest rate will trade at a forward premium.

4Which of the following describes the situation where a commodity's futures price is higher than its spot price?

A.Backwardation

B.Contango

C.Convenience yield

D.Basis risk

Explanation: Contango describes a market condition where the futures or forward price of a commodity is higher than its current spot price. This typically happens when the market anticipates a future price rise or due to storage and carrying costs. The opposite condition, where futures prices are lower than spot prices, is known as backwardation.

5What is the primary role of the Continuous Linked Settlement (CLS) system in the foreign exchange market?

A.To provide liquidity to central banks

B.To mitigate foreign exchange settlement risk (Herstatt risk)

C.To calculate forward interest differentials

D.To execute high-frequency algorithmic trades

Explanation: The CLS system is a specialized global settlement system that mitigates settlement risk (specifically Herstatt risk) in foreign exchange transactions. It achieves this by settling both legs of an FX transaction simultaneously using a Payment-versus-Payment (PvP) mechanism. CLS operates as an industry utility and handles the vast majority of global FX interbank settlements.

6Which of the following best defines a Non-Deliverable Forward (NDF)?

A.A forward contract where the underlying physical commodity is delivered at expiration

B.A cash-settled forward contract on a non-convertible or restricted currency

C.A spot contract that settles immediately via physical delivery

D.An option contract that gives the holder the right to deliver a currency

Explanation: A Non-Deliverable Forward (NDF) is an over-the-counter, cash-settled forward contract, usually on a thinly traded or non-convertible currency (such as INR, CNY, or BRL). At maturity, there is no physical exchange of the principal currencies. Instead, the net profit or loss is calculated based on the difference between the agreed NDF rate and the spot fixing rate, and this net amount is settled in a convertible currency (typically USD).

7A trader executes a USD/ZAR spot trade at 18.5000 and decides to hedge ZAR interest rate risk using a forward-forward FX swap. If the trader wishes to lock in a borrowing rate for USD against ZAR from 1 month to 4 months, what swap combination is required?

A.Buy ZAR spot, sell 1-month forward, buy 4-month forward

B.Buy USD/ZAR 1-month forward (buy USD / sell ZAR) and sell USD/ZAR 4-month forward (sell USD / buy ZAR)

C.Sell USD/ZAR 1-month forward (sell USD / buy ZAR) and buy USD/ZAR 4-month forward (buy USD / sell ZAR)

D.Sell ZAR spot, buy 1-month forward, sell 4-month forward

Explanation: To borrow USD against ZAR from month 1 to month 4, the trader needs to receive USD and pay ZAR at month 1 (which means buying USD/ZAR 1-month forward) and then return USD and receive ZAR at month 4 (which means selling USD/ZAR 4-month forward). This combination represents a forward-forward FX swap. This strategy effectively covers the interest rate differential exposure between the two dates.

8The spot rate for EUR/USD is 1.0800. The 3-month interest rate for EUR is 3.50% per annum, and the 3-month interest rate for USD is 5.25% per annum. Assuming a 30/360 day count convention and 90 days in the period, what are the theoretical 3-month EUR/USD swap points?

A.+46 points

B.-46 points

C.+47 points

D.-47 points

Explanation: To calculate swap points, we use the interest rate parity formula: Forward = Spot * (1 + (r_USD * 90 / 360)) / (1 + (r_EUR * 90 / 360)). Forward = 1.0800 * (1 + (0.0525 * 0.25)) / (1 + (0.0350 * 0.25)) = 1.0800 * (1.013125) / (1.00875) = 1.084683. The swap points are Forward - Spot = 1.084683 - 1.0800 = +0.004683, which equates to +46.8 points. Rounding to the nearest point gives +47 points. Let's recalculate accurately: 1.0800 * (1 + 0.013125) / (1 + 0.00875) = 1.0800 * 1.013125 / 1.00875 = 1.084683. Forward points = 1.084683 - 1.0800 = 0.004683. Expressed in pips (where 1 pip = 0.0001), this is +46.8 pips. Rounding to the nearest whole pip/point gives +47 points.

9Which of the following statements regarding Gold Forward Offered Rates (GOFO) and gold leasing rates is correct?

A.GOFO is equal to the gold lease rate plus USD LIBOR (or SOFR swap rate equivalent)

B.GOFO is equal to USD LIBOR (or SOFR swap rate equivalent) minus the gold lease rate

C.GOFO is equal to the gold lease rate minus USD LIBOR (or SOFR swap rate equivalent)

D.GOFO and the gold lease rate are always equal and move in tandem

Explanation: GOFO (Gold Forward Offered Rate) represents the rate at which market makers are prepared to lend USD against gold. The relationship is governed by: GOFO = USD Interest Rate - Gold Lease Rate (GLR). Thus, the gold lease rate represents the difference between USD interest rates and GOFO. If the lease rate rises, GOFO falls, and vice versa.

10A corporate treasurer wants to hedge a future commodity purchase. Under what market structure would the treasurer face a positive roll yield when rolling a long futures position?

A.Contango

B.Backwardation

C.Normal contango

D.Flat yield curve

Explanation: In a backwardated market, the futures price is below the spot price, and futures prices rise toward the spot price as they approach maturity. A trader with a long position gains from this upward price convergence (known as positive roll yield) when rolling the futures contract forward. In contango, a long position faces negative roll yield because futures prices decay downward toward the lower spot price.

About the ACI Diploma Exam

The ACI Diploma is a senior-level professional qualification validating advanced knowledge in foreign exchange, commodities, interest rates, linear derivatives (futures, swaps, FRAs), option-based derivatives (options pricing, Greeks, trading strategies), and risk management principles (Value-at-Risk, capital adequacy, credit/market risk). Successful candidates gain the right to use the ACICMP® (ACI Certified Market Professional) designation.

Assessment

100 multiple-choice questions

Time Limit

3 hours

Passing Score

60% (60/100 correct answers)

Exam Fee

370 - 420 EUR (ACI Financial Markets Association (ACI FMA))

ACI Diploma Exam Content Outline

20%

Foreign Exchange and Commodities

Historical evolution, FX spot, forward pricing and valuation, FX swaps for interest arbitrage, forward-forward swaps, and commodity markets.

20%

Interest Rates

Yield curve analysis, money markets, interest rate instruments (bill, CD, repo), yield calculations, and money market linkages.

20%

Linear Derivatives

Money market futures contracts, pricing and application of Forward Rate Agreements (FRAs), and Interest Rate Swaps (IRS) for hedging and arbitrage.

20%

Option-Based Derivatives

Option pricing models (Black-Scholes), payoff structures, option Greeks (Delta, Gamma, Vega, Theta), volatility, and advanced options trading strategies.

20%

Principles of Risk

Risk governance frameworks, market risk, credit/counterparty risk, liquidity risk, Value-at-Risk (VaR) measurement, and Basel capital requirements.

How to Pass the ACI Diploma Exam

What You Need to Know

Passing score: 60% (60/100 correct answers)
Assessment: 100 multiple-choice questions
Time limit: 3 hours
Exam fee: 370 - 420 EUR

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

ACI Diploma Study Tips from Top Performers

1Ensure you are fully comfortable with financial calculations, such as FX forward pricing, swap points, interest rate futures pricing, and FRA settlement.

2Understand the mechanics of yield curves, including spot rates, forward rates, and yield to maturity.

3Detail your study of option Greeks (Delta, Gamma, Vega, Theta, Rho) and understand how options behave with changes in time, volatility, and underlying price.

4Master the definitions and settlement formulas of Forward Rate Agreements (FRAs) and interest rate swaps.

5Understand risk metrics, specifically how to calculate and interpret Value-at-Risk (VaR), and familiarise yourself with Basel capital framework principles.

Frequently Asked Questions

What is the ACI Diploma?

The ACI Diploma is a highly regarded international qualification offered by the ACI Financial Markets Association. It provides senior foreign exchange and money market dealers, treasurers, and operations managers with a deep theoretical and practical understanding of financial markets, derivatives, and risk management.

What is the format and duration of the exam?

The exam consists of 100 multiple-choice questions to be completed in 3 hours. It is computer-based and administered at authorized ACI FMA Test Centres worldwide under physical supervision. No remote testing is permitted for this exam.

What are the five subject areas of the ACI Diploma?

The current syllabus covers: 1) Foreign Exchange and Commodities, 2) Interest Rates, 3) Linear Derivatives, 4) Option-Based Derivatives, and 5) Principles of Risk. Each area constitutes roughly 20% of the examination content.

What passing score is required, and what is the pass rate?

To pass the ACI Diploma exam, a candidate must score at least 60% (60 correct answers out of 100). The global pass rate is not officially published but is estimated to be around 55% to 60%, reflecting the exam's advanced difficulty.

Are there any eligibility requirements or prerequisites?

There are no formal prerequisites to register for the ACI Diploma. However, it is strongly recommended that candidates possess a solid foundation in financial mathematics and market operations, which can be acquired through the ACI Dealing Certificate or ACI Operations Certificate.

What designation is awarded upon passing?

Successful candidates are awarded the ACICMP® (ACI Certified Market Professional) designation, signaling an advanced level of professional competence in global treasury and financial markets.