CUSTOMER ACCOUNT 2 UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS
GRADED A PLUS
Question:
A customer margin account shows: 100 shares of ABC @ $50 300 shares of DEF @ $80 200 shares
of PDQ @ $30 Debit = $6,000 SMA = $11,500 Reg. T = 50% What is the equity in the account?
StatusA A. $35,000 StatusB B. $29,000 StatusC C. $23,500 StatusD D. $17,500.
Answer:
B. $29,000
Question:
A customer opens a margin account by purchasing: 100 shares ABC Common @ $50 200 shares
PDQ Common @ $80 100 shares XYZ Common @ $20 The customer deposits the required margin
amount. Subsequently, ABC stock increases to $60; PDQ to $100; and XYZ to $40. The new equity
in the account is? A. $11,500 B. $18,500 C. $20,000 D. $30,000.
Answer:
B. $18,500
Question:
As the initial transaction in a new margin account, a customer buys: 100 shares of ABC @ $30 300
shares of DEF @ $40 200 shares of PDQ @ $50 The customer deposits the required margin.
Subsequently, ABC stock rises to $40; DEF rises to $50; and PDQ rises to $60. The SMA in the
account is: A. $0 B. $3,000 C. $6,000 D. $18,500.
Answer:
B. $3,000
Question:
As the initial transaction in a new margin account, a customer buys 1,000 shares of XYZ stock at
$40 and deposits the required margin. The market value increases to $50. Which statements are
, TRUE? I Equity increases by $5,000 II Equity increases by $10,000 III SMA increases by $5,000 IV
SMA increases by $10,000 A. I and III B. I and IV C. II and III D. II and IV.
Answer:
C. II and III
Question:
A customer buys 100 shares of PDQ at $28 as the initial transaction in a new margin account.
Subsequently, PDQ rises to $38 per share in the market. What is account's equity after the change in
market value? A. $1,900 B. $2,000 C. $3,000 D. $4,000.
Answer:
C. $3,000
Question:
A customer margin account shows: 200 shares of ABC @ $40 200 shares of DEF @ $25 400 shares
of PDQ @ $15 Debit = $9,000 SMA = $500 Reg. T = 50% How much of other marginable common
stocks can be purchased without making a deposit? A. $500 B. $1,000 C. $1,500 D. $2,000.
Answer:
B. $1,000
Question:
Long Margin Account Market Value: $80,000 Debit Balance: $30,000 If the customer buys $80,000
of listed stocks and sells $20,000 of listed stocks on the same day, the customer must deposit: A. 0
B. $10,000 C. $20,000 D. $30,000.
Answer:
C. $20,000
Question:
A customer buys 200 shares of ABC common stock at $50 and buys 20 XYZ October 50 Calls @ $5
on the same day in a margin account. The customer wishes to meet the margin call by depositing
fully paid PDQ stock, currently valued at $50 per share. How many shares of PDQ must be
GRADED A PLUS
Question:
A customer margin account shows: 100 shares of ABC @ $50 300 shares of DEF @ $80 200 shares
of PDQ @ $30 Debit = $6,000 SMA = $11,500 Reg. T = 50% What is the equity in the account?
StatusA A. $35,000 StatusB B. $29,000 StatusC C. $23,500 StatusD D. $17,500.
Answer:
B. $29,000
Question:
A customer opens a margin account by purchasing: 100 shares ABC Common @ $50 200 shares
PDQ Common @ $80 100 shares XYZ Common @ $20 The customer deposits the required margin
amount. Subsequently, ABC stock increases to $60; PDQ to $100; and XYZ to $40. The new equity
in the account is? A. $11,500 B. $18,500 C. $20,000 D. $30,000.
Answer:
B. $18,500
Question:
As the initial transaction in a new margin account, a customer buys: 100 shares of ABC @ $30 300
shares of DEF @ $40 200 shares of PDQ @ $50 The customer deposits the required margin.
Subsequently, ABC stock rises to $40; DEF rises to $50; and PDQ rises to $60. The SMA in the
account is: A. $0 B. $3,000 C. $6,000 D. $18,500.
Answer:
B. $3,000
Question:
As the initial transaction in a new margin account, a customer buys 1,000 shares of XYZ stock at
$40 and deposits the required margin. The market value increases to $50. Which statements are
, TRUE? I Equity increases by $5,000 II Equity increases by $10,000 III SMA increases by $5,000 IV
SMA increases by $10,000 A. I and III B. I and IV C. II and III D. II and IV.
Answer:
C. II and III
Question:
A customer buys 100 shares of PDQ at $28 as the initial transaction in a new margin account.
Subsequently, PDQ rises to $38 per share in the market. What is account's equity after the change in
market value? A. $1,900 B. $2,000 C. $3,000 D. $4,000.
Answer:
C. $3,000
Question:
A customer margin account shows: 200 shares of ABC @ $40 200 shares of DEF @ $25 400 shares
of PDQ @ $15 Debit = $9,000 SMA = $500 Reg. T = 50% How much of other marginable common
stocks can be purchased without making a deposit? A. $500 B. $1,000 C. $1,500 D. $2,000.
Answer:
B. $1,000
Question:
Long Margin Account Market Value: $80,000 Debit Balance: $30,000 If the customer buys $80,000
of listed stocks and sells $20,000 of listed stocks on the same day, the customer must deposit: A. 0
B. $10,000 C. $20,000 D. $30,000.
Answer:
C. $20,000
Question:
A customer buys 200 shares of ABC common stock at $50 and buys 20 XYZ October 50 Calls @ $5
on the same day in a margin account. The customer wishes to meet the margin call by depositing
fully paid PDQ stock, currently valued at $50 per share. How many shares of PDQ must be
