Which of the Following Statements Is Not True

question 118

Multiple Choice

Which of the following statements is not true?

• A)When buying stock on margin, an investor borrows part of the money necessary to buy a particular stock.
• B)Usually, the brokerage firm lends the money or arranges for the loan in a margin transaction.
• C)Investors buy on margin because doing so offers them the potential for greater profits.
• D)The margin requirement is set by the exchanges.
• E)The current margin requirement is identical for all exchanges.

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Definitions:

Ordered Triple

A set of three numbers used to locate a point in three-dimensional space.

Linear Equations

Mathematical expressions representing straight lines, typically written in the form Ax + By + C = 0.

Triangles

Geometric figures with three sides and three angles.

Angles

A measure of the turn between two lines meeting at a point, usually measured in degrees or radians.