Series 7 Exam Question 53: Answer and Explanation

Question: 53

With Regulation T at 50%, the loan value is

• A. 50%
• B. 100%
• C. 25%
• D. 30%

Correct Answer: A

Explanation:

A. The loan value is the amount of money the broker-dealer can lend a customer with a margin account. The loan value is based off of Regulation T or the house requirement if higher than Regulation T. So, if Regulation T is set at 50%, the broker-dealer can lend the customer the other 50%.