QUESTION: 333 Topic: 4, Volume D

A bank quotes 3-month EUR deposits at 0.45% ¡ª 0.55% to its broker. The broker lifts the bank’s offer at 0.55%. Which of the following steps must the broker take?

The broker must show the borrower’s name to the lender first and disclose the lender’s name only if the borrower is acceptable to the lender.
The broker must show the lender’s name to the borrower first and disclose the borrower’s name only if the lender is acceptable to the borrower.
The broker must show the borrower’s and lender’s names to each other at the same time.
For marketing reasons, the broker can show the lender’s name to the borrower at any time.

Answer(s): A

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QUESTION: 334 Topic: 4, Volume D

Where dealing for personal account is allowed, what safeguards to prevent abuse or insider dealing are stated by the Model Code?

The need to maintain confidentiality with respect to non-public price sensitive information
The maximum amounts or sizes of trades dealers are allowed to trade for their own account
The instruments/products dealers can trade for their own account
The pledge that no action is taken by employees that might adversely affect the interests of clients or counterparties

Answer(s): B

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QUESTION: 335 Topic: 4, Volume D

Principals are allowed to:

visit a broker’s dealing room to arrange or confirm deals
visit a broker’s dealing room with the permission of the management of both parties
deal from within a broker’s dealing room with the permission of the broker’s management
place an order with a broker from within the same broker’s office

Answer(s): B

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QUESTION: 336 Topic: 4, Volume D

What needs to be done in the event that a trade is amended by one or both parties?

A new confirmation should be generated by both parties but there is no need to restart the confirmation cycle.
The amending party should verbally inform the other party.
A new confirmation should be generated and the confirmation cycle should restart and continue until the trade is completely matched by both parties.
A new confirmation need not be generated but the confirmation cycle must restart and continue until the trade is completely matched by both parties.

Answer(s): C

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QUESTION: 333 Topic: 4, Volume D

QUESTION: 334 Topic: 4, Volume D

QUESTION: 335 Topic: 4, Volume D

QUESTION: 336 Topic: 4, Volume D