Which one of the following statements is true?
A) Brokers should only show the names of banks to counterparties who have prime credit ratings.
B) Brokers should only show the names of banks to counterparties who provide good liquidity to the brokered market.
C) Brokers should only show the names of banks to counterparties whom they know well.
D) Brokers should only show the names of bank counterparties if both sides display a serious intention to transact

Question

Quizplus · Accepted Answer

Brokers should only reveal the names of their bank counterparties if they are dealing with counterparties who are serious about completing the transaction. This is because the reputation and stability of the bank is important to consider when entering into a transaction. Counterparties who do not display a serious intention to transact may not be able to perform on their obligations, which can be risky for both parties. Therefore, brokers should ensure that both sides of the transaction have a genuine interest in completing the trade before revealing the names of their bank counterparties.

Which One of the Following Statements Is True