Margin Accounts Cannot Be Used To

question 44

Multiple Choice

Margin accounts cannot be used to:

• A)purchase securities using leverage
• B)borrow money from a brokerage account to fund a frivolous vacation
• C)provide overdraft protection
• D)take physical delivery of an underlying asset on maturity of a futures contract

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Definitions:

Simple Reaction Time

The time it takes for an individual to respond to a single stimulus, such as pressing a button upon seeing a light.

Choice Reaction Time

The time it takes to respond to a stimulus when there are multiple possible responses.

Inspection Time

A measure of sensory processing speed, reflecting the minimum time needed for an individual to make a simple discrimination between stimuli.

Working Memory Capacity

The amount of information that an individual can hold and manipulate in their mind for a short period of time.