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First National Bank made the following loans to Mr. James Wilson during the previous calendar year:
* Loan A, made on February 2, is a loan for purchasing margin stock and is secured by margin stock
* Loan B, made on March 15, is also for purchasing margin stock and is secured by margin stock
* Loan C, made on June 30, is an unsecured loan for purchasing margin stock
* Loan D, made on September 10, is for purchasing a car, secured by the car
All the loans are still outstanding at the end of the year. Which of the loans must be combined for purposes of the margin requirements of Regulation U?
Suggested Answer: D
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12 comments · newest first
CH
Chauncey
3 days ago
I’m leaning towards A. All loans seem related.
PU
Pura
8 days ago
I feel like it's D. A, B, and C should be combined.
MA
Marget
13 days ago
I think it's B. Loans A and B are for margin stock.
VA
Van
18 days ago
So, are we sure about this? Seems a bit confusing!
LO
Lorrine
24 days ago
I think all three margin loans should be combined.
BO
Bok
29 days ago
Wait, why would Loan C be included? It's unsecured!
SH
Sharee
1 month ago
Totally agree, it's all about the margin stock!
PA
Pamella
1 month ago
Loans A and B need to be combined for margin requirements.
WA
Wai
1 month ago
I feel like the car loan shouldn't be included, but I'm confused about whether A and B alone are enough or if we need to add C too.
LE
Letha
2 months ago
I practiced a similar question, and I believe all loans for margin stock should be combined, which would mean A, B, and C.
GU
Gussie
2 months ago
I'm not entirely sure, but I remember something about unsecured loans not being combined. So maybe it's just A and B?
JA
Janet
2 months ago
I think we need to combine the loans that are specifically for purchasing margin stock, so maybe A, B, and C?