SIE practice questioneasyAccount Types – Cash Accounts
A new client wants to open an account in which all securities purchases must be paid for in full by the settlement date. Which account type is most appropriate?
- AOptions account
- BMargin account
- CCash account✓ Correct answer
- DCustodial account
Explanation
Why C — Cash account
A cash account requires full payment for securities by settlement. Margin accounts allow borrowing, options accounts are for trading options, and custodial accounts are managed for minors.
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