What Does the Model Code Say About the Responsibility of a Broker

question 171

Multiple Choice

What does the Model Code say about the responsibility of a broker in handling suspicious transactions?

• A) Suspicious transactions should be reported by the principals.
• B) Brokers need to make staff aware of the problem and exercise vigilance.
• C) A broker should report any suspicions about a transaction to the other counterparty.
• D) Brokers should advise clients to reject the name.

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Definitions:

Negation

A grammatically correct construction used to assert that a statement is false.

Disjunction

A grammatically correct construction used to assert that one or both of two statements are true.

Truth Table

A mathematical table used in logic to determine the truth value of logical expressions based on their variables' truth values.

Imply

To suggest or express something indirectly or covertly, leaving the full meaning to be inferred by the audience.