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:

Dell Personal Computers

A range of computer products manufactured by Dell Inc., known for their customization options and direct sales model.

Distribution Intensity

The level of market coverage a product gets, ranging from intensive, selective to exclusive distribution, depending on the company's strategy.

Intensive Distribution

A strategy where a company aims to distribute its products as widely as possible, making them available at many outlets.

Selective Distribution

A distribution strategy where a product is sold at a limited number of outlets, to control availability and maintain the product's high-end image.