ETHICS · ETHICS

Ethical Dimensions - Employees

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Ethics in Banking — Ethics in Banking.

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Q

How does the chapter define a 'conflict of interest' for a bank employee?

A

A conflict of interest exists when an employee must choose whether to advance his or her own interests, those of the organization, or those of some other group.

Q

What is the definition of 'conflict of interest' as per the chapter on ethical dimensions for bank employees?

A

When employee must choose between personal, organizational, or third-party interests.

Q

Why is ethical conduct by bank employees considered especially important in the banking sector?

A

Banks deal with public money and public trust, so ethical conduct by employees is critical to maintaining the integrity and stability of the financial system.

Q

Submitting personal travel bills as official tour reimbursement is classified as which type of ethical violation?

A

Abuse of official position for personal gain.

Q

What is the primary obligation of a bank employee with respect to customer information?

A

A bank employee is obligated to maintain strict confidentiality of customer information and must not disclose it to unauthorized parties.

Q

What constitutes insider trading by a bank employee as described in the chapter?

A

Trading on internal client information not yet available to the public.

Q

What does the term 'fiduciary duty' mean in the context of a bank employee's responsibilities?

A

Fiduciary duty means the employee must act in the best interest of the customer and the organization, placing their interests above personal gain.

Q

Which regulatory body is responsible for regulating insider trading in India?

A

SEBI (Securities and Exchange Board of India).

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