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:

Social Organization

The structured arrangement of social relationships and institutions that collectively form the basis of society or within specific groups.

Division of Labor

The allocation of different tasks to different people or groups in a society, aimed at increasing efficiency and productivity in the production process.

Collective Conscious

An aggregation of mutual convictions, notions, and ethical positions that function as a consolidating power within a community.

Mechanical Societies

Term used by Émile Durkheim to describe simple, traditional societies connected by similarities and communal bonds rather than complex division of labor.