Which of the Following, by Definition, Allows You to Buy

question 109

Multiple Choice

Which of the following, by definition, allows you to buy stocks, bonds, and other assets with borrowed money?

• A) Cash account.
• B) Margin account.
• C) Full-service brokerage account.
• D) Self-directed brokerage account.

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Definitions:

Autonomous Consumption

The level of consumption spending that occurs when income is zero, representing the expenditures necessary for basic needs.

APC

Absolute Plate Count, a method used in microbiology to estimate the total number of viable bacteria in a sample. If this is not the intended context, then NO.

Induced Consumption

The portion of spending by households that increases with their income, demonstrating how consumer spending is influenced by changes in income.

Autonomous C

Consumer spending that does not depend on current income, influenced by factors like confidence and wealth, key for understanding economic fluctuations.