Lupe's Stockbroker Called to Inform Lupe of a Margin Call

question 394

Multiple Choice

Lupe's stockbroker called to inform Lupe of a margin call that requires that she pay $1,000.This indicates that the value of Lupe's stock has:

• A)just announced a stock split.
• B)decreased.
• C)increased.
• D)changed causing the Federal Reserve to increase the margin rate.

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Definitions:

Federal Unemployment Taxes

Taxes imposed by the federal government on employers to fund state unemployment agencies and provide unemployment compensation to workers who have lost their jobs.

State Unemployment Taxes

Taxes imposed by state governments on businesses based on the amount of wages paid to employees, used to fund unemployment compensation programs.

Employer Payroll Tax Rates

The percentage rates at which employers are required to tax their employees' wages for federal and state payroll taxes.

FICA Social Security Taxes

Taxes paid by both employers and employees to fund the Social Security program, determined as a percentage of payroll.