If You Ignore a Margin Call, Your Broker

question 68

Multiple Choice

If you ignore a margin call, your broker:

• A)will seize all the assets in your account.
• B)will close your account.
• C)may place a short sale on your behalf to cover the amount of the call.
• D)may sell some of your securities to repay the margin loan.
• E)will increase both your margin loan and the rate of interest on that loan.

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Definitions:

Time-Driven Activity-Based Costing

A method of costing that assigns costs to products based on the time required to produce each product.

Capacity Analysis

Capacity Analysis is the assessment of the production capability of a facility to understand if it meets the demands placed upon it.

Order Fulfillment Department

A division within a company responsible for receiving, processing, and delivering orders to customers.

Time-Driven Activity-Based Costing

A costing method that assigns costs based on the time resources are consumed by activities, improving accuracy in cost allocation.