When a Deal Is Done Via a Broker

question 284

Multiple Choice

When a deal is done via a broker:

• A) it need not be confirmed between the counterparties as the broker confirms it immediately with both counterparties
• B) it should also be confirmed directly between the two counterparties
• C) it is important to note that broker confirmations are bilateral confirmations between the principals of the trade
• D) the dealer should obtain acknowledgement that the deal has been agreed to but may assume agreement to the trade in the absence of such acknowledgement

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Definitions:

Adaptation-Level Phenomenon

The psychological principle that states individuals judge new experiences based on their past experiences.

James-Lange Theory

A theory suggesting that emotions are the result of physiological reactions to events.

Catharsis Hypothesis

The theory that expressing or experiencing strong emotions releases them and reduces their impact, leading to relief.

Aggressive Urges

Innate or learned desires to act or react in a hostile, forceful, or violent manner towards oneself or others.