Theresa Has a Margin Account with a 60 Percent Initial

question 13

Multiple Choice

Theresa has a margin account with a 60 percent initial margin requirement and a 35 percent maintenance margin.What is the maximum dollar amount of stock she can purchase if her cash balance in the account is $35,300?

• A) $19,140.00
• B) $31,900.00
• C) $44,093.33
• D) $58,833.33
• E) $91,142.86

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Definitions:

Reflecting Skills

Techniques used in communication that involve mirroring the content or emotions of what another person has said to show understanding and empathy.

Summarizing

The practice of briefly stating the main points of a piece of writing, conversation, or presentation in a concise form.

Paraphrasing

A communication technique involving restating the content of a message in your own words to confirm understanding.

Open Question

A type of question that cannot be answered with a simple "yes" or "no," encouraging a more detailed and informative response.