You and a Dealer at Another Bank Have a Verbal

question 24

Multiple Choice

You and a dealer at another bank have a verbal bilateral reciprocal arrangement to quote each other two-way prices. During periods of high volatility, the other dealer refuses to quote to you. What does the Model Code say about this situation?

• A) The other dealer is bound to reciprocate.
• B) This is not in any way an enforceable or binding commitment.
• C) The Model Code does not comment on dealing reciprocity.
• D) It is common market practice to suspend reciprocity in periods of high volatility.

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Definitions:

Watery Fluid

A liquid substance that is clear and similar in composition and appearance to water, often found in bodily tissues and spaces.

Posterior Chambers

The space between the iris and the lens of the eye, filled with aqueous humor, which helps to maintain intraocular pressure and refract light.

Aqueous Humor

A clear, watery fluid that fills the space in the front part of the eye, between the lens and the cornea, helping to maintain intraocular pressure and nourish the eye.

Anterior Chamber

The space within the eye that is filled with fluid, situated between the cornea's inner surface and the iris.