Which One of the Following Is a Major Advantage of Margin

question 109

Multiple Choice

Which one of the following is a major advantage of margin trading?

• A) increase in potential diversification
• B) increase in potential profits on a percentage basis
• C) possibility of increased gains on a dollar basis
• D) interest free loans

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Definitions:

Lump Sum Transfer

A one-time payment of money or resources, usually not expected to be repaid.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased at given prices and income level.

Government Housing Assistance

Programs offered by the government to provide affordable housing or financial aid to individuals and families in need.

Budget Line

A visual depiction of every potential mix of two products that a buyer is capable of purchasing based on their budget and the product prices.