20-105 Broker-Dealers Must Calculate a Market Value for Their Net

question 124

Multiple Choice

20-105 Broker-dealers must calculate a market value for their net worth on a day-to-day basis and ensure that their net worth-assets ratio

• A)exceeds 1 percent.
• B)is at least 2 percent.
• C)exceeds 5 percent.
• D)is less than 1 percent.
• E)is greater than or equal to 1 percent.

---

Definitions:

Variable Costs

Charges that adjust in line with changes in production volume or output quantity.

Required Return

A rephrasing of Required Rate of Return; it's the expected return that investors demand for an investment in a particular asset, based on its risk.

Cash Break-even

The point at which a business generates enough cash flow to cover its operating expenses and capital costs.

Variable Costs

Expenses that vary directly with the level of business activity.