What Is the Purpose of a Margin Call

question 3

Multiple Choice

What is the purpose of a margin call?

• A) to inform you that your margin loan is due and payable
• B) to demand funds to increase your margin position
• C) to let you know the amount of funds that are now available for you to borrow
• D) to advise you that the interest rate on your loan has changed
• E) to remind you of the upcoming monthly payment due on your margin loan

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Definitions:

Breaking From Work

Taking short periods of rest or distraction during working hours to prevent fatigue and enhance productivity.

Waiting to Work

The period during which employees are on standby, ready to engage in job tasks but not actively working, often due to logistical or organizational delays.

Nonexempt Worker

An employee who is entitled to receive overtime pay in accordance with the Fair Labor Standards Act (FLSA) for hours worked beyond the standard 40-hour workweek.

Fair Labor Standards Act

A United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers.