Which of the Following Correctly States the Model Code's Recommendations

question 566

Multiple Choice

Which of the following correctly states the Model Code's recommendations regarding terms and documentation?

• A) Such documentation should be bi-laterally signed by the dealers of both principals intending to transact business.
• B) When using such agreements... the wording in the agreement must be changed to match the actual transaction details after trading.
• C) Such documentation should be signed, in many cases before any applicable market transactions are entered into.
• D) For instruments where standard terms do not exist, the Model Code recommends that no documentation should be used.

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Definitions:

ATM Card

A plastic card issued by a bank allowing the cardholder to withdraw cash from automated teller machines.

Liability

A legal obligation or responsibility to another party, often resulting in the requirement to pay damages or compensation.

Wholesale Funds Transfer

The process of transferring large amounts of funds from one institution to another, usually facilitated through electronic systems.

Payment Order

A written instruction to a bank or financial institution authorizing the transfer of a specific amount of money from one account to another.