Which One of the Following Statements Is True

question 136

Multiple Choice

Which one of the following statements is true?

• A) When buying stock on margin, an investor borrows stock from the brokerage firm.
• B) Usually, a bank 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 established by the New York Stock Exchange.
• E) The current margin requirement is 25 percent.

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Definitions:

Use Value

The usefulness of a good or service as determined by its ability to satisfy needs or wants, as opposed to its exchange value or price in the market.

Properly Positioned

describes when a product, service, or brand is effectively marketed to appeal to its target audience or market segment.

Brand Promise

A statement or commitment made by a brand to its customers, indicating what they can consistently expect from its products or services.

Social Purpose

The objective or intention of an organization to contribute positively to society or specific causes beyond financial gains.