When Do Bank Participants Have a Duty to Make Absolutely

question 209

Multiple Choice

When do bank participants have a duty to make absolutely clear whether the prices they are quoting are firm or merely indicative?

• A) only if they are dealing with brokers
• B) only if dealing on an e-trading platform
• C) only if they are dealing in non-marketable amounts
• D) always

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Definitions:

Fair Value Method

The fair value method is an accounting approach that measures assets and liabilities at estimates of their current market value rather than historical cost.

Historical Cost Method

An accounting technique that values an asset at its original purchase price, without adjustments for inflation or market value changes.

Cost with Amortization Method

The spreading of the cost of an intangible asset over its useful life, affecting financial statements through periodic charges.

Unrealized Gain

The potential profit that exists on paper resulting from an investment that has not yet been sold for cash.