January Study Question of the Month

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card. Continue reading

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.

Congratulations to Jamie F., this month’s Study Question of the Month winner!

Question

Relevant to the Series 24.

 

 

 

 

 

Which of the following does not have to be included in the margin agreement?

A. The interest rate

B. The method of computing interest charges

C. The conditions for interest charges to be imposed

D. The method of determining the debit balance

Answer: A.

The call loan rate and interest charges to the customer may change on a daily basis, so the actual interest rate does not have to be specified. This fact must be included in the margin agreement, along with the method of computing interest charges (computed daily), the conditions for interest charges to be imposed, and the method of determining the credit balance.

 

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