SIE practice questioneasyCash vs. Margin Accounts
Which account type requires all transactions to be paid for in full by settlement date?
- AMargin account
- BCash account✓ Correct answer
- COptions account
- DPrime brokerage account
Explanation
Why B — Cash account
All purchases in a cash account must be paid for in full by settlement. Margin accounts allow borrowing, options accounts may contain option strategies but aren't defined by payment, and prime brokerage accounts are for sophisticated institutions and often involve margin.
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