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Call loans made by banks to broker/dealers are generally for the purpose of which of the following?
Suggested Answer: C
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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.
11 comments · newest first
KA
Karon
1 year ago
Surprised this is even a question, it's so basic!
BU
Buck
1 year ago
Really? I always thought they were for operating expenses.
DI
Dick
1 year ago
Yeah, margin accounts make the most sense here.
BE
Becky
1 year ago
I thought it was for financing securities in inventory?
TA
Tammara
1 year ago
Definitely for carrying margin accounts.
GO
Golda
1 year ago
I feel like the answer is definitely related to margin accounts, but I could see how it might also involve financing securities.
GE
Geraldine
1 year ago
I remember practicing a question similar to this, and I think it was about financing securities held in inventory.
LA
Lajuana
1 year ago
I think call loans are mainly used for carrying margin accounts, but I'm not entirely sure.
UN
Una
1 year ago
I’m a bit confused; I thought call loans were for meeting operating expenses, but that doesn't seem right now.
RO
Ronny
1 year 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.
NA
Nakisha
1 year 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.