The Committee for Professionalism Strongly Recommends Intra-Day Oral Deal Checks

question 15

Multiple Choice

The Committee for Professionalism strongly recommends intra-day oral deal checks to help reduce the number and size of differences, particularly when dealing through voice- brokers, for deals involving foreign counterparties, in faster moving markets such as FX and when dealing in other instruments which have very short settlement periods. This checking should:

• A) Be carried out at least three times a day.
• B) Be agreed between the parties.
• C) Be done at the end of each day.
• D) Be decided by the broker.

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Definitions:

Tight Bureaucracy

A highly structured organizational form with strict rules, procedures, and hierarchy, emphasizing control and consistency.

Contingency Perspective

An approach suggesting that the best management practices depend on the circumstances of a situation or environment.

Predictable Environment

A setting or situation where changes and conditions can be anticipated with a high degree of certainty.

Inventory Analysis

The examination of inventory to determine the optimal stock levels, turnover rates, and ordering practices.