According the Model Code, a Principal, Whose Name Has Been

question 565

Multiple Choice

According the Model Code, a principal, whose name has been rejected, feeling that the broker may have actually quoted a price or rate that it could not in fact substantiate, may:

• A) deduct points from the broker or adjust the brokerage bill accordingly
• B) in some centres, ask either the central bank or some other neutral body to investigate and confidentially verify that there was support for the original price or rate
• C) in some centres, ask the local ACI to investigate and confidentially verify that there was support for the original price or rate
• D) insist that the broker discloses the name of the other counterparty

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Definitions:

Predictive Validity

How well a result from a test or scale forecasts subsequent performance in a connected area.

Face Validity

The degree to which a test or measure appears effectively to assess what it is supposed to assess, based on casual inspection.

Content Validity

An indicator of construct validity of a measure in which the content of the measure is compared to the universe of content that defines the construct.

Discriminant Validity

The extent to which a construct is truly distinct from other constructs by correlating minimally with measures of different constructs.