SIE practice questioneasyAccount Types
A customer wants to buy stock using borrowed funds. Which account must be opened?
- ACash account
- BMargin account✓ Correct answer
- CCustodial account
- DRetirement account
Explanation
Why B — Margin account
Margin accounts allow purchasing securities with borrowed funds. Cash accounts require full payment; custodial and retirement accounts do not necessarily permit borrowing for stock purchases.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Account Types questions
- A parent opens a custodial account for a minor. Who is the legal owner of the assets in the account?
- Which of the following account types is specifically designed to provide tax advantages for retirement savings?
- Which benefit is unique to traditional IRA accounts compared to taxable brokerage accounts?
- A customer wishes to open an account for their 13-year-old child to start investing in stocks. What type of account…