Under what circumstances are banks allowed to "park" deals or positions with a counterparty?
A) Not under any circumstances, since the "parking" of deals or positions should be prohibited
B) in conditions of exceptional volatility
C) only if the two counterparties to the deal agree
D) only if "parking" of deals or positions has been approved by senior management

Question

Quizplus · Accepted Answer

"Parking" deals or positions is generally prohibited as it can be used to manipulate financial statements or hide losses, which is against regulatory standards and ethical banking practices.

Under What Circumstances Are Banks Allowed to "Park" Deals or Positions