If an Investor Does Not Respond to a Margin Call

question 111

Multiple Choice

If an investor does not respond to a margin call, the broker will

• A) sell enough of the investor's holdings that the margin account can be closed.
• B) sell some of the investor's holdings to cover the margin call.
• C) notify the Federal Reserve so they can cover the call.
• D) sell all of the investor's holdings and close their brokerage account.

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Definitions:

Blood Volume

The total amount of blood circulating within the body, vital for delivering nutrients and removing waste products.

Circulatory Shock

A condition where the circulatory system fails to supply enough blood to the organs, leading to organ failure.

Renin-Angiotensin

The renin-angiotensin system is a hormone system that regulates blood pressure and fluid balance in the body.

ADH Secretion

ADH secretion involves the release of antidiuretic hormone, also known as vasopressin, from the pituitary gland which helps regulate water balance in the body.