SIE Exam Question 986: Answer and Explanation

Question: 986

Which of the following refers to the cash held in an investor's margin account at a broker-dealer that can be withdrawn at any time? It may include interest, dividends, and coupon payments.

  • A. Average daily balance
  • B. Free credit balance
  • C. Liquidation margin
  • D. Margin balance

Correct Answer: B

Explanation:

The free credit balance refers to the cash held in an investor's margin account at a broker-dealer that can be withdrawn at any time. It may include interest, dividends, and coupon payments.

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