Which One of the Following Statements Is Correct

question 48

Multiple Choice

Which one of the following statements is correct?

• A)The call money rate is the rate of interest brokerage firms charge on margin loans.
• B)The spread is the fee a deep-discount broker charges to execute a trade.
• C)The percentage of a purchase paid for with borrowed funds is referred to as the margin.
• D)A margin loan is treated as an asset on an account balance sheet.
• E)Margin is equal to account equity divided by the value of the securities owned.

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Definitions:

Misleading Information

Incorrect or deceptive information that leads to false conclusions or understanding.

Cue-dependent

Relating to the phenomenon where recall of information is enhanced if retrieval occurs in a context similar to the one where the information was encoded.

Childhood Amnesia

The inability to remember events and experiences that occurred during the first 2 or 3 years of life.

Psychogenic Amnesia

A type of amnesia caused by psychological stress or trauma, characterized by temporary memory loss that cannot be attributed to a neurological condition.