SIE Exam Question 957: Answer and Explanation

Question: 957

Which of the following is the ethical barrier that is required between different divisions of a financial institution to avoid conflicts of interest?

• A. Checks and balance system
• B. Chinese wall
• C. Ethical wall
• D. Moral barrier

Correct Answer: B

Explanation:

A Chinese wall is the ethical barrier that is required between different divisions of a financial institution to avoid conflicts of interest.