Banks Have a Fiduciary Responsibility to Ensure That Clients Have

question 113

Multiple Choice

Banks have a fiduciary responsibility to ensure that clients have all necessary information to understand the transaction because this:

• A) Will encourage clients to do more business.
• B) Will help prevent potential litigation.
• C) Will help banks sell sophisticated risk management
• D) Is required by all regulators.

---

Definitions:

Desired Profit

The targeted amount of profit a company aims to achieve within a specific period, often used in budgeting and planning.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Unit Selling Price

The amount for which a unit of product is sold, not including any discounts or allowances.

Variable Cost Method

An accounting approach where costs that vary directly with the level of production are allocated to products, influencing the cost of goods sold and inventory valuation.