What Recommendation Does the Model Code Make in Cases of Market

question 186

Multiple Choice

What recommendation does the Model Code make in cases of market disruption?

• A) Market participants should strictly adhere to the rules issued by local regulators, supervisors or central banks in order to maintain efficiency and avoid disputes.
• B) Even if local provisions are in place, market participants should only adhere to the ACI best practices of the Model Code in order to maintain efficiency and avoid disputes.
• C) Participants must at all times adhere to the rules issued by local regulators, supervisors or central banks even if these rules or procedures conflict with any provision of an existing written agreement.
• D) Parties may unilaterally decide whether they wish to adhere to the terms of the agreement or to amend the terms of the transaction to follow the relevant procedure.

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Definitions:

Classical Conditioning

A method of pairing in learning where two stimuli are habitually associated; over time, the response originally from the second stimulus comes to be from the first stimulus alone.

Reinforcement

A principle in behavior theory in which a behavior is strengthened or made more likely to occur in the future by consequences that follow it.

Secondary Reinforcer

A stimulus that gains its reinforcing capability through its association with a primary reinforcer, such as money or praise.

Disequilibrium Principle

A concept in learning and education suggesting that learning occurs when an individual encounters cognitive conflict or disequilibrium, prompting adaptation and new learning to restore balance.