The Model Code Recommends That When Banks Accept a Stop-Loss

question 39

Multiple Choice

The Model Code recommends that when banks accept a stop-loss order

• A) Management must ensure ongoing lines of communication are in place between the parties.
• B) Management must report to the central bank.
• C) Management allows only experienced dealers to take such orders.
• D) Bank staff must secure the approval of the counterpartqs management to accept such orders.

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Definitions:

Early Adulthood

This life stage follows adolescence, typically involving individuals aged 20 to 40, characterized by increased independence, career establishment, and often the formation of long-term relationships.

Organ Reserve

The functional capacity of organs to withstand stress or damage beyond the usual physiological demands, often decreasing with age.

Homeostasis

The process through which living organisms naturally regulate themselves to keep stable while adapting to the best conditions for their survival.

Senescence

The biological process of aging, characterized by a gradual decline in the functional capacity of an organism's cells, tissues, and organs.