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Which One of the Following Statements Is Correct

Question 38

Multiple Choice

Which one of the following statements is correct?


A) The call money rate is the rate of interest brokerage firms charge on margin loans.
B) The spread is the fee a deep-discount broker charges to execute a trade.
C) The percentage of a purchase paid for with borrowed funds is referred to as the margin.
D) A margin loan is treated as an asset on an account balance sheet.
E) Margin is equal to account equity divided by the value of the securities owned.

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