Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

American Bankers Association CRCM Exam - Topic 4 Question 128 Discussion

First National Bank has made a loan to Mr. Good, secured by margin stock, to purchase margin stock. He trades stocks frequently, makes substitutions on loan collateral regularly, and sometimes withdraws collateral and does not replace it. Must FNB ensure that margin requirements are met after every substitution and withdrawal?
A) Yes. The margin requirements must be met at all times.
B) No. If the margin requirements were met when the loan was made, there are no further requirements.
C) No. The bank is only required to ensure that withdrawals do not violate margin requirements; collateral substitutions are not covered.
D) No. In this case the margin requirement must be met only when the loan is renewed.

American Bankers Association CRCM Exam - Topic 4 Question 128 Discussion

Actual exam question for American Bankers Association's CRCM exam
Question #: 128
Topic #: 4
[All CRCM Questions]

First National Bank has made a loan to Mr. Good, secured by margin stock, to purchase margin stock. He trades stocks frequently, makes substitutions on loan collateral regularly, and sometimes withdraws collateral and does not replace it. Must FNB ensure that margin requirements are met after every substitution and withdrawal?

Show Suggested Answer Hide Answer
Suggested Answer: A

by France at Jun 16, 2026, 05:31 AM

Limited Time Offer

25%

Off

Get Premium CRCM Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Amie
2 hours ago
D seems a bit off to me; I thought margin requirements were ongoing, not just at renewal. But I could be mixing it up with other regulations.
upvoted 0 times
...
Christiane
5 days ago
I feel like C could be right since it mentions that the bank only needs to ensure withdrawals don't violate requirements, but I'm not completely confident.
upvoted 0 times
...
Erasmo
10 days ago
I'm not entirely sure, but I remember a practice question that suggested the bank only needs to check at the start of the loan. Maybe it's B?
upvoted 0 times
...
Shad
16 days ago
I think the answer is A because margin requirements should always be maintained, especially with frequent trading.
upvoted 0 times
...

Save Cancel