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:

Vitamins

Organic compounds that are essential in small amounts for maintaining normal metabolism and health.

Minerals

Inorganic substances required by the body in small amounts for a variety of functions, including bone formation and enzyme activation.

Saturated Fat

A type of dietary fat found primarily in animal products and certain oils, which, when consumed in high amounts, can contribute to heart disease.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks for cells, muscles, and tissues in the body.