If an Investor Does Not Respond to a Margin Call

question 111

Multiple Choice

If an investor does not respond to a margin call, the broker will

• A) sell enough of the investor's holdings that the margin account can be closed.
• B) sell some of the investor's holdings to cover the margin call.
• C) notify the Federal Reserve so they can cover the call.
• D) sell all of the investor's holdings and close their brokerage account.

---

Definitions:

Defensive Communication

A response style characterized by guardedness to protect oneself from perceived threats or criticism.

Communication

The process of sending and receiving messages or information between individuals or groups.

Attack

An aggressive action or behavior intended to harm, subdue, or defeat someone or something.

Cultural Assumption

A belief or value that is widely accepted within a culture or society, often unconsciously, and influences behavior and attitudes.