The SIPC

question 4

Multiple Choice

The SIPC:

• A)guarantees investors against any loss related to an investment account held at a brokerage firm.
• B)guarantees cash balances held in brokerage accounts up to $500,000.
• C)is an agency of the federal government.
• D)protects private brokerage firms from bankruptcy.
• E)protects investors from missing assets when a brokerage firm closes.

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Definitions:

Intended Beneficiary

A person for whom a contract is specifically made, who has the right to enforce the terms of the contract, even though they are not a party to it.

Promisee

An individual or entity to whom a promise or commitment is made.

Delegate Duty

The act of assigning one's responsibilities or tasks to another person, typically to someone subordinate.

Accountant

An accountant is a professional who performs financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or individual's financial operations.