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Finra Series-7 Exam - Topic 4 Question 44 Discussion

Call loans made by banks to broker/dealers are generally for the purpose of which of the following?
C) carrying margin accounts
A) expansion of office facilities
B) meeting operating expenses
D) financing securities held in inventory

Finra Series-7 Exam - Topic 4 Question 44 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 44
Topic #: 4
[All Series-7 Questions]

Call loans made by banks to broker/dealers are generally for the purpose of which of the following?

Show Suggested Answer Hide Answer
Suggested Answer: C

carrying margin accounts. A call loan is made to brokers who use securities as collateral. They are usually made to finance the debit balances in margin accounts.


by Nichelle at May 03, 2022, 04:34 PM

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Karon
10 months ago
Surprised this is even a question, it's so basic!
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Buck
10 months ago
Really? I always thought they were for operating expenses.
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Dick
11 months ago
Yeah, margin accounts make the most sense here.
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Becky
11 months ago
I thought it was for financing securities in inventory?
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Tammara
11 months ago
Definitely for carrying margin accounts.
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Golda
11 months ago
I feel like the answer is definitely related to margin accounts, but I could see how it might also involve financing securities.
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Geraldine
11 months ago
I remember practicing a question similar to this, and I think it was about financing securities held in inventory.
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Lajuana
11 months ago
I think call loans are mainly used for carrying margin accounts, but I'm not entirely sure.
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Una
11 months ago
I’m a bit confused; I thought call loans were for meeting operating expenses, but that doesn't seem right now.
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Ronny
11 months ago
The Deming cycle is definitely focused on improvement, so I'm leaning towards option A. But I'll double-check the other options just to be sure.
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Nakisha
11 months ago
Hmm, I'm a bit unsure about this one. There are a few options presented, and I'm not sure which one would be the best recommendation. I'll need to think through the pros and cons of each approach.
upvoted 0 times
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