A Restricted Margin Account Means

question 46

Multiple Choice

A restricted margin account means

• A) no transactions can be made to decrease the actual margin.
• B) the investor must supply additional margin dollars.
• C) the market price of the security has risen since it was purchased.
• D) the investor will receive a margin call.

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Definitions:

Worth

The value or importance of something, often measured in terms of money or utility.

Marginal Utility

The additional satisfaction or utility received by a consumer from consuming one more unit of a good or service.

Consumer Surplus

The divergence between the sum consumers are prepared and financially capable to pay for a good or service and the sum they actually disburse.

Marginal Utility

The extra pleasure or benefit received from using an additional unit of a product or service.