Broker-Dealers Must Ensure That Aggregated Indebtedness Is Not Less Than

question 81

Multiple Choice

Broker-dealers must ensure that aggregated indebtedness is not less than

• A)15 times larger than liquid assets.
• B)15 times larger than equity.
• C)25 percent of net worth.
• D)2 percent of equity.
• E)8 percent of equity.

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Definitions:

Authorized

Refers to having official permission or approval, often in the context of legal or financial operations that have been ratified or sanctioned by a governing body or higher authority.

Bank Service Charge

Fees charged by a bank for the maintenance of an account and for providing various banking services.

Note Receivable

A financial asset representing a written promise for the repayment of a loan or debt within a specific timeframe.

Note Payable

A written promise to pay a specified amount of money, usually including interest, at a future date.