Use the Following Two Columns of Items to Answer the Matching

question 6

Short Answer

Use the following two columns of items to answer the matching questions below:
-sell stop order
A)purchasing stock with funds borrowed from a brokerage firm
B)an order to buy or sell at the prevailing market price
C)an order to sell a stock when the price falls to a specified level
D)a brokerage firm that provides advice plus transaction services
E)a brokerage firm that executes transactions without giving advice

• A)purchasing stock with funds borrowed from a brokerage firm
• B)an order to buy or sell at the prevailing market price
• C)an order to sell a stock when the price falls to a specified level
• D)a brokerage firm that provides advice plus transaction services
• E)a brokerage firm that executes transactions without giving advice

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Definitions:

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, often held in the central bank to lend to other banks or as currency in circulation.

Required Reserves

The minimum amount of funds that a bank is required to hold in reserve against deposits, as mandated by central banking regulations.

Demand Deposits

Bank accounts that allow the holder to withdraw funds without prior notice, such as checking accounts.

Time Deposits

Savings accounts or certificates of deposit that hold a fixed sum of money for a specified period of time, during which the depositor cannot withdraw the funds without penalty.