Free 3I0-012 Web TestEngine Demo

Q3 Single choice

You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced that the story is true, but have a friend at another bank who you know has very large exposures to this firm and would be seriously damaged by a default.

What advice does the Model Code give?

A
Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should not be passed on in any circumstances.
B
Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be discussed only with great care.
C
Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be reported to the regulator in order to provide warning of possible systemic problems.
D
You have a duty to warn counterparties but should make clear that the information is unsubstantiated.

3I0-012 Web TestEngine demo