AFP
CTP · Question #366
(Topic 4) The Treasury Analyst at an investment firm has entered the company into a repurchase agreement with a counterparty at the direction of the Treasury Manager. The compliance office has…
The correct answer is D. Roles and responsibilities. See the full explanation below for the reasoning.
Question
- (Topic 4)
The Treasury Analyst at an investment firm has entered the company into a repurchase agreement with a counterparty at the direction of the Treasury Manager. The compliance office has determined that the trade was done in violation of the company investment policy. The Treasury Manager has the power to approve the execution of trades; however, the Treasury Analyst was not a designated trader on behalf of the firm. Which area of the investment policy was violated by the Treasury Analyst?
Options
- ASegregation of duties
- BDelegation of authority
- CException management
- DRoles and responsibilities
How the community answered
(28 responses)- A11% (3)
- B7% (2)
- C4% (1)
- D79% (22)
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