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:

British Pounds

The official currency of the United Kingdom, a major global currency used for various transactions and reserves.

Current Account Deficit

A situation in which a country's total imports of goods, services, and transfers are greater than the country's total export.

Dutch Tourists

Refers specifically to travelers from the Netherlands who visit other countries for leisure, business, or other purposes.

Swedish Kroner

The official currency of Sweden, often represented by the code SEK.