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

question 450

Multiple Choice

Which of the following correctly states the Model Code's recommendations regarding electronic trading and broking?

• A) Liquidity providers should be cognizant of reputational risks when supplying liquidity for onward third party consumption.
• B) Market participants must not seek information as to the legal status of a potential counterparty before allocating credit or trading status.
• C) Transactions should be handled in accordance with the regulator's dealing rule book.
• D) Access to systems internally and at the client interface must be strictly controlled by the dealers.

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Definitions:

Net Income

The net income of a company, which is calculated by deducting all expenses, taxes, and costs from its total earnings.

Variable Costs

Expenses that change in proportion to the production volume or output level.

Graphical Approach

A method of solving problems or understanding data by using graphical representations, such as charts or graphs.

CVP Analysis

Cost-Volume-Profit analysis is a method used in managerial accounting to understand how changes in costs, sales volume, and price affect a company's profit.