A Margin Account

question 58

Multiple Choice

A margin account

• A) can be opened by any investor who wants to purchase securities by charging them to his/her credit card.
• B) allows an investor to borrow one hundred percent of the cost of the securities purchased.
• C) allows an investor to borrow a portion of the purchase price at a reasonable rate of interest.
• D) is permitted only in wrap accounts.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.

Purchasing Control

The process of managing and regulating the buying of goods and services for an organization, to ensure that products are purchased cost-effectively and meet the required standards.

Supplier-Purchaser Relationships

The dynamic between businesses that provide products or services and their customers or clients, focusing on transactional exchanges, trust, and long-term partnerships.

Leveraging Buying Power

Utilizing an organization's or individual's ability to negotiate better terms through the strategic use of their purchasing capacity.