SIE Exam Practice Question 1026

Question: 1026

____ The short-term interest rate charged by banks on loans extended to broker-dealers, who then use the funds to make margin loans on behalf of customers.

Correct Answer: A

Explanation:

The call loan rate is the short-term interest rate charged by banks on loans extended to broker-dealers, who then use the funds to make margin loans on behalf of customers.

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