CUSTOMER ACCOUNT 4 UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS GRADED A

CUSTOMER ACCOUNT 4 UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS
GRADED A PLUS




Question:
What is needed to open a partnership account?

Answer:
Joint account agreement for margin, and partnership agreement for cash



Question:
Formula for equity in a long margin account

Answer:
Long Market Value - Debit= Equity



Question:
Formula for short margin account

Answer:
Credit balance- short market value= Equity



Question:
Combined Margin account

Answer:
long market value - short market value + credit balance- debit balance= Equity



Question:
Under Regulation T, if no payment for a trade is received, the account is "frozen" for how many
days?

, Answer:
90 days



Question:
All of the following transactions are permitted in a custodian account EXCEPT the

Answer:
Short sale of common stock



Question:
The minimum maintenance margin requirement for long stock positions is:

Answer:
25%



Question:
What are initial and maintenance margins for stock positions in a long margin account?

Answer:
50/25



Question:
FINRA defines a "customer complaint" as one that is received by the member firm

Answer:
In writing by mail or email



Question:
A customer buys 1 ABC Jan 40 Call @ $12 and sells 1 ABC Jan 55 Call @ $3 when the market
price of ABC is $45. The customer must deposit:

Answer: