A Margin Loan Exposes the Borrower to Which Source(s) of Risk

question 2

Multiple Choice

A margin loan exposes the borrower to which source(s) of risk for interest repayments?

• A) timing issues arising from the receipt of investment income and the repayment of loan interest
• B) the ability of the borrower to replace or add to security provided in the event of a margin call
• C) the loan servicing ability of the borrower to meet repayments from existing income
• D) both a and c

---

Definitions:

Civic Ritual

Practices and ceremonies that reflect the values, traditions, and beliefs of a community or society, often associated with commemorating historical events or celebrating cultural heritage.

Cultural

Pertaining to the customs, arts, social institutions, and achievements of a particular nation, people, or social group.

Symbolic Exchange

The practice of exchanging goods or services that hold cultural, emotional, or symbolic value beyond their material worth.

Psychological Exchange

Refers to a transaction or interaction between individuals that involves emotional or cognitive considerations, often in the context of relationships or social behavior.