The SIPC

question 4

Multiple Choice

The SIPC:

• A)guarantees investors against any loss related to an investment account held at a brokerage firm.
• B)guarantees cash balances held in brokerage accounts up to $500,000.
• C)is an agency of the federal government.
• D)protects private brokerage firms from bankruptcy.
• E)protects investors from missing assets when a brokerage firm closes.

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Definitions:

Owner's Investment

The total amount of money or assets that an owner puts into his or her business.

Equipment

Physical assets used in the operation of a business to produce goods or services.

Monthly Rent

Regular payment made for the use of property or land, agreed upon on a monthly basis.

Utilities Expense

Utilities expense refers to the cost incurred by businesses or individuals for the usage of basic utilities such as electricity, water, gas, and telecommunication services.