ACI
3I0-012 · Question #676
You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced that the story is…
The correct answer is B. Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third. See the full explanation below for the reasoning.
Question
You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced that the story is true, but have a friend at another bank who you know has very large exposures to this firm and would be seriously damaged by a default. What advice does the Model Code give?
Options
- AUnsubstantiated information which you suspect to be inaccurate and which could be damaging to a third
- BUnsubstantiated information which you suspect to be inaccurate and which could be damaging to a third
- CUnsubstantiated information which you suspect to be inaccurate and which could be damaging to a third
- DYou have a duty to warn counterparties but should make clear that the information is unsubstantiated.
How the community answered
(17 responses)- A6% (1)
- B82% (14)
- C12% (2)
Community Discussion
No community discussion yet for this question.