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.

---

Definitions:

Programmed Decisions

Decisions made using a rule, policy, or procedure for routine or repetitive problems that have been encountered before.

Customer Relations

The management and development of interaction between a business and its customers to improve satisfaction and loyalty.

Programmed Decisions

Decisions that are routine and repetitive, which can be addressed through established processes.

Company Policies

Established guidelines and rules that dictate how various aspects of business should be conducted within an organization.