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CTP · Question #370
CTP Question #370: Real Exam Question with Answer & Explanation
The correct answer is A. Chinese wall. See the full explanation below for the reasoning.
Question
- (Topic 4) XYZ Corporation uses ABC Bank for their lending and treasury management. In addition, the bank serves as bond trustee for XYZ Corp. If XYZ Corp. becomes distressed, this relationship could create a conflict of interest for the financial institution. What barrier prevents a financial institution from sharing confidential information between divisions?
Options
- AChinese wall
- BCounterparty risk
- CNon-disclosure agreement
- DSarbanes-Oxley controls
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