A Discretionary Account

question 97

Multiple Choice

A discretionary account:

• A)authorizes a broker to trade securities on your behalf.
• B)charges an annual fee to cover all trading and management services.
• C)is the term applied to brokerage accounts with check-writing and credit card services.
• D)is the same as a wrap account.
• E)is the account used to pledge securities as collateral for a margin loan.

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Definitions:

Subsidy

A form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policies.

Labor-Intensive Goods

Products or services that require a relatively high amount of labor compared to capital in their production or delivery processes.

Factor Endowments

Economic term for the amount and type of resources possessed by a country, such as land, labor, and capital, which contribute to its productive capacity.

World Trade

The exchange of goods, services, and capital between countries and territories across the globe, fostering economic integration and development.