SIE Exam - Unit 1

Downturns in the business cycle or economic contractions are characterized by all of the following EXCEPT a. falling inventories b. rising numbers of bond defaults c. rising numbers of bankruptcies d. higher consumer debt

a. falling inventories

When investors buy and sell securities to and from one another, these transactions occur a. in the secondary market b. in the primary market c. in the over-the-counter market only d. on exchanges only

a. in the secondary market

Which of the following would NOT be expected to be found in a tombstone advertisement for a new issue? a. the intended purpose for which to use the sales proceeds b. the name of the issuer or those of the underwriters c. the number of shares to be offered d. the type of security to be offered (equity or debt)

a. the intended purpose for which to use the sales proceeds

To arrive at M3, one would add to M2 which of the following? a. gold and silver bars on reserve at the FR b. $100,000 and larger time deposits and repurchase agreements c. all currency in circulation, including coins d. savings and checking accounts

b. $100,000 and larger time deposits and repurchase agreements

For a new issue that qualifies for NASDAQ listing, a prospectus must be provided to all purchasers within how many days after the effective date? a. 40 b. 25 c. 60 d. 90

b. 25

A firm that functions for the purpose of receiving and delivering payments and securities on behalf of both buyer and seller in a securities transaction is a. a broker-dealer b. a clearing agent c. a transfer agent d. a depository

b. a clearing agent

Report of rising inventories generally occur during which period of the business cycle? a. peak b. contraction c. expansion d. recovery

b. contraction

A bank is likely to do which of the following when the Federal Reserve Board eases the money supply? a. raise its broker call loan rate b. lower its prime rate c. raise its prime rate d. lower the hypothecation loan rate

b. lower its prime rate

To contract or slow economic growth US fiscal policy should be to a. cut taxes and increase government spending for programs and development b. raise taxes and cut government spending for programs and development c. cut taxes and government spending for programs and development d. raise taxes and government spending for programs and development

b. raise taxes and cut government spending for programs and development

The largest component of the US balance of payments is a. exports b. the balance of trade c. imports d. foreign currency

b. the balance of trade

To expand the overall economy, the Federal Reserve Board, acting as agent for the US Treasury department, will a. sell securities via open market operations, pushing interest rates up b. sell securities via open-market operations, pushing interest rates down c. buy securities via open market operations, pushing interest rates down d. buy securities via open market operations, pushing interest rates up

c. buy securities via open market operations, pushing interest rates down

An institution or a person responsible for making all investment, management, and distribution decisions in an account maintained in the best interests of another is a. fully disclosed firm b. investment company c. custodian d. unit investment trust

c. custodian

Economists refer to longer, more severe contractions in the economy as a. declines b. depletion c. depressions d. recessions

c. depression

An investment banker primarily engages in which of the following activities? a. helping banks find appropriate investments for excess reserves b. offering high net worth investors private banking services c. helping issuers or raise capital through securities issuance d. assisting wealthy individuals manage their investment portfolios

c. helping issuers or raise capital through securities issuance

The enforcement of MSRB rules upon broker-dealers is performed by a. OCC b. MSRB c. NYSE d. FINRA

d. FINRA

Producers would generally report rising inventories during which period of the business cycle? a. recovery b. expansion c. peak d. contraction

d. contraction

Which of the following points to a general decline in prices occurring during sever recessions and the unemployment rate is rising. a. stagflation b. contraction c. stagnation d. deflation

d. deflation

Deflationary periods are characterized by all of the following EXCEPT a. a decline in prices b. rising unemployment c. coinciding with recessions d. increased consumer demand

d. increased consumer demand

Which of the following is TRUE regarding the primary market? a. it is regulated by the Securities Act of 1934 b. the NYSE is an example of a primary market c. price is determined by supply and demand d. issuer transactions occur in the primary market

d. issuer transactions occur in the primary market

An underwriting group is currently assisting an issuer with the preparation and filing of the registration statement for a new issue. Who is responsible for the accuracy of the information within the registration statement? a. underwriting group b. lead underwriter c. both the underwriters and the issuing corporation d. issuing corporation

d. issuing corporation

State registration is not required if the transaction is exempt. An example of an exempt transaction would be a. one involving municipal bonds b. one involving US government bonds c. one that is solicited d. one that is unsolicited

d. one that is unsolicited

If it finds that the registration statement needs revision, expansion, or to have corrections made, the SEC may suspend the review of the new issue and issue a deficiency letter. Once the issuer submits a corrected registration statement, the 20-day cooling-off period a. considered over allowing the registration to be effective b. is increased by 10 business days to accommodate review of the new information c. begins anew d. resumes where it had left off

d. resumes where it had left off

Implementing monetary policy, and thereby undertaking the responsibility to maintain the stability of the US financial system, is a. the NYSE b. the Securities and Exchange Commission (SEC) c. the Internal Revenue Service (IRS) d. the Federal Open Market Committee (FOMC)

d. the Federal Open Market Committee (FOMC)

A corporation seeking to raise funds in order to expand its manufacturing capacity would do so in a. the funding market b. the currency market c. the secondary market d. the capital market

d. the capital market

It is generally agreed that the most volatile interest rate in the US economy is a. the call money rate b. the discount rate c. the prime rate d. the fed funds rate

d. the fed funds rate

The business cycle is generally view as having how many stages?

4

Which of the following organizations was created to protect investors financial from a bank failure? a. FDIC b. SIPC c. OFAC d. FRB

a. FDIC

All of the following SROs function under the SEC's oversight EXCEPT a. FSLIC b. CBOE c. MSRB d. FINRA

a. FSLIC

First Amalgamated Bank of Buffalo, a large commercial bank, is a member of the Federal Reserve System. Should the bank need to increase its reserves, it could i. Borrow from the FRB and pay the discount rate ii. Borrow from the FRB and pay the federal funds rate iii. Borrow from another member bank and pay the discount rate iv. Borrow from another member bank and pay the federal funds rate a. I & IV b. II & III c. I & III d. II & IV

a. I & IV

It would be reasonable to expect an increase in exports from the United States if I. the dollar strengthened against the euro II. the yen strengthened against the dollar III. the Swiss franc weakened against the dollar IV. the dollar weakened against the British pound a. II & IV b. I & III c. II & III d. I & IV

a. II & IV

When an issuing company sells securities to primarily institutional investors and a small number of wealthy individuals, as opposed to the general investing public in an exempt offering, this is known as a. a private placement b. a secondary placement c. a primary placement d. a secondary offering

a. a private placement

A company with previously issued shares outstanding wants to issue more shares to the public. These new shares are issued in what is known as a. an APO b. a secondary market offering c. an IPO d. a secondary registration

a. an APO

When benchmark interest rate indicates the direction of the FRB's monetary policy? a. discount rate b. prime rate c. federal funds rate d. broker call loan rate

a. discount rate

When the Federal Open Market Committee (FOMC) directs that Treasury securities be purchased in the open market, this a. increases the supply of money b. decreases the money supply c. is intended to hinder contraction of the money supply d. stabilizes the money supply

a. increases the supply of money

Most economists would agree that rising employment would be found during periods of a. inflation b. deflation c. stagflation d. stagnation

a. inflation

In most cases, the majority of private placements are sold to a. institutional investors b. individuals who meet the definition of accredited investor c. general public investors d. investment bankers

a. institutional investors

When the money supply in the economy increases, a. interest rates go down, hence borrowing and spending for consumers is easier b. interest rates go down, hence borrowing and spending for consumers is more difficult c. interest rates go up, hence borrowing and spending for consumers is more difficult d. interest rates go up, hence borrowing and spending for consumers is easier

a. interest rates go down, hence borrowing and spending for consumers is easier

ABC Corporation has filed a registration statement with the SEC for the sale of 1 million shares of common stock. This will be the first public offering for ABC. Twelve days into the cooling-off period, ABC received a deficiency letter from the SEC requesting further information. Five days later, ABC submits the required corrections. Assuming no other problems, this issue should become effective in a. 15 days b. 8 days c. 20 days d. 3 days

b. 8 days

For nonexempt securities being offered to the public for the first time by a corporate issuer, which of the following would be applicable? a. Securities Act of 1934 regulating securities that must be offered by prospectus b. Securities Act of 1933 regulating issues that must be offered by prospectus c. Securities Act of 1934 regulating issues that must be offered by prospectus d. Securities Act of 1933 regulating securities traded in the secondary market

b. Securities Act of 1933 regulating issues that must be offered by prospectus

A firm that functions for the purpose of receiving and delivering payments and securities on behalf of both buyer and seller in a securities transaction is a. a transfer agent b. a clearing agent c. a broker-dealer d. a depository

b. a clearing agent

An indication of interest given by an investor during the cooling-off period is a. an investor's binding commitment to purchase some of the issue immediately b. an investor's declaration of potential interest in purchasing some of the issue after the security comes out of registration c. an investor's binding commitment to purchase some of the issue after the security comes out of registration d. an investor's declaration of potential interest in purchasing some of the issue immediately

b. an investor's declaration of potential interest in purchasing some of the issue after the security comes out of registration

All of the following are acceptable choices to function as a depository and intermediary for transactions between buyers and sellers of securities EXCEPT a. carrying firms b. credit unions c. the Depository Trust Company d. the National Securities Clearing Corporation

b. credit unions

To grow or expand the economy, US fiscal policy should be a. cut taxes and government spending for programs and development b. cut taxes and increase government spending for programs and development c. raise taxes and cut all government spending for programs and development d. raise taxes and government spending for programs and development

b. cut taxes and increase government spending for programs and development

Which of the following prospectus delivery requirements for negotiable securities sold in the secondary markets is NOT accurate? a. for an additional issue listed on an exchange or NASDAQ there is no delivery requirement b. for an additional issue if the security is non-NASDAQ there is no delivery requirement c. for an IPO if non-NASDAQ there is no delivery requirement d. for an IPO if listed on an exchange or NASDAQ the delivery requirement is 25 days.

b. for an additional issue if the security is non-NASDAQ there is no delivery requirement

Assets offered and traded in the securities markets can include all of the following EXCEPT a. equities b. life insurance c. currencies d. derivative products

b. life insurance

Tools available to the Federal Reserve Board (FRB) include a. setting the Fed funds rate, setting the prime rate, and setting the discount rate b. open-market operations, setting the discount rate, and setting reserve requirements c. setting the discount rate, enacting tax laws, and setting the Fed funds rate d. open-market operations, setting the discount rate, and enacting tax laws

b. open-market operations, setting the discount rate, and setting reserve requirements

The statement "these securities have not been approved or disapproved nor have any representations been made about the accuracy or the adequacy of the information" is a. is the disclaimer placed by the underwriters in a tombstone advertisement b. mandated to be in the final prospectus by the SEC c. mandated by the FINRA to be placed in both the preliminary and final prospectus d. placed by the issuer in the preliminary prospectus

b. raise taxes and cut government spending for programs and development

The economy is showing that employment is low, there is little consumer demand, and loans for expansion and retooling are way down, showing a lack of business activity. Yet prices for consumer goods are still rising. Economists would call this a period of a. deflation b. stagflation c. inflation d. stagnation

b. stagflation

Which benchmark interest rate indicates the direction of the FRB's monetary policy? a. the prime rate b. the discount rate c. the broker call loan rate d. the federal funds rate

b. the discount rate

The access equals delivery rule applies to a. all prospectuses delivered before the registration date b. the final prospectus and aftermarket delivery obligations c. the preliminary prospectus delivery requirements during the cooling-off period d. the final prospectus delivery requirements during the cooling-off period

b. the final prospectus and aftermarket delivery obligations

An institutional customer, such as a hedge fund, utilizes the services of a broker-dealer who provides custody of securities as well as other back-office functions while allowing the customer to establish relationships with other broker-dealers for the purpose of executing orders. This account would be known as a. a fully disclosed account b. a self-clearing account c. a prime account d. a clearing account

c. a prime account

Both exempt and nonexempt securities have full disclosure documents available to the investing public so that an informed investment decisions can be made. The document associated with exempt securities would be a. a prospectus or disclosure document b. an official statement or registration statement c. an official statement or offering circular d. a prospectus or offering circular

c. an official statement or offering circular

An individual is defined by the SEC as an accredited investor if the individual has a net worth of a. $3 million or more, or has had an annual income of $200,000 or more in each of the 5 most recent years b. $10 million or more, or has had an annual income of $100,000 or more in each of the 5 most recent years c. greater than $1 million, or has had an annual income of greater than $200,000 in each of the 2 most recent years d. $5 million of more, or has had an annual income of $500,000 or more in each of the 2 most recent years

c. greater than $1 million, or has had an annual income of greater than $200,000 in each of the 2 most recent years

For primary and secondary markets, which of the following is TRUE? a. in all the secondary market, securities transactions cannot take place on an exchange b. in the primary market, securities are purchased from and sold to individual investors c. in the primary market, securities are sold to the public and the issuer receives the sale proceeds d. in the secondary market, all sales proceeds go to the issuer

c. in the primary market, securities are sold to the public and the issuer receives the sale proceeds

Which of the following securities is exempt from the Securities Act of 1933 a. common stock b. preferred stock c. municipal note d. debenture

c. municipal note

A provision for filing securities at the state level used solely for securities that are considered to be federal covered securities is known as a. qualification b. registration c. notice filing d. coordination

c. notice filing

Economists call mild, short-term contractions a. declines b. troughs c. recessions d. depressions

c. recessions

Which of the following types of broker-dealers would most likely have correspondent firms? a. introducing b. fully disclosed c. self-clearing d. market maker

c. self-clearing

Regarding the issuance of new securities to the public, which of the following is TRUE? a. the SEC review of a new issues filing must always be longer than 20 days b. underwriters are permitted to accept orders for securities during the SEC review period c. the Securities Act of 1933 provides criminal penalties for fraud d. registrations become effective within 10 business days of SEC filing

c. the Securities Act of 1933 provides criminal penalties for fraud

If the US dollar is relatively strong against the Japanese yen, it can be assumed that a. the US dollar will buy fewer goods produced in Japan and the Japanese yen will also buy fewer goods produced in the US b. the US dollar will buy more goods produced in Japan and the Japanese yen will also buy more goods produced in the US c. the US dollar will buy more goods produced in Japan, while the Japanese yen buys fewer goods produced in the US d. the US dollar will buy fewer goods produced in Japan, while the Japanese yen buys more goods produced in the US

c. the US dollar will buy more goods produced in Japan, while the Japanese yen buys fewer goods produced in the US

Regarding the registration statement filed with the SEC when new securities are to be issued, all of the following are true EXCEPT a. the names and addresses of company officers and directors, their salaries, and a 5-year business history of each must be shown b. underwriters may assist the issuer in preparing and filing the registration statement c. the accuracy and adequacy of the registration documents is the responsibility of the underwriters d. a description of how the proceeds raised from the sale will be used must be disclosed

c. the accuracy and adequacy of the registration documents is the responsibility of the underwriters

A barometer of short-term interest rates and one that is therefore considered the most volatile interest rate in the US economy is a. the broker call loan rate b. the discount rate c. the federal funds rate d. the prime rate

c. the federal funds rate

Regarding registration for the sale of securities, those registered under the Investment Company Act of 1940, such as mutual funds, would be considered a. federal covered securities required to register at the state level only b. securities that are exempt from registration at all levels c. securities required to register at both the federal and the state level d. federal covered securities and not required to register at the state level

d. federal covered securities and not required to register at the state level

An underwriter is placing a tombstone advertisement for a company's new issue. A prospective investor might expect to see all of the following information on the advertisement EXCEPT a. the number of shares to be sold b. the type of security to be sold (stock or bond) c. the names of the underwriting members d. the names of the company's officers

d. the names of the company's officers

The ABC Chemical Corporation wishes to advertise its upcoming offering of common stock in a tombstone advertisement that they, the issuer, will place. When placing the tombstone advertisement, which of the following would be least likely to appear? a. the expected price range of the offering b. the total number of shares being offered c. the name of the issuer d. the names of the investment bankers underwriting the issue

d. the names of the investment bankers underwriting the issue

A broker-dealer that concentrated its business efforts on proprietary trading would most likely be function as a. an investment banker b. an underwriter c. a market maker d. an investment adviser

c. a market maker

When a firm engages in a proprietary trading, buying into and selling out of its own inventory for profit, it is acting as a. an agent b. an investment banker c. a market maker d. an underwriter

c. a market maker

Which of the following is NOT a tool used by the Federal Reserve Board (FRB) to impact the money supply? a. changing the discount rate b. open market operations c. changing the reserve requirements d. changing the prime rate

d. changing the prime rate

A company is already public with several major stockholders. Sale proceeds for shares being sold to the investing public will go to some of the existing stockholders who want to divest of their shares. This is I. A Secondary Offering II. A Primary Offering III. An Additional Public Offering IV. An Initial Primary Offering

A Secondary Offering & An Additional Public Offering

Which of the following is TRUE regarding a member firm operation under FINRA memebership or the membership of another self-regulatory organization (SRO)? a. member firms can offer all types of investment products, such as stocks, bonds, mutual funds, options and others, or limit the products they offer to only a few b. member firms must always accommodate dealing with retail investors and not limit business to that done with other industry professionals c. member firms may never incorporate proprietary trading into their business model d. member firms are required to be full-service broker-dealers

a. member firms can offer all types of investment products, such as stocks, bonds, mutual funds, options and others, or limit the products they offer to only a few

Which of the following regarding monetary or fiscal policy is TRUE? a. monetary policy is what the FRB engages in when it attempts to influence the money supply b. fiscal policies are governmental budget decisions enacted by the FRB c. Monetary policy refers to the actions that congress takes when it attempts to influence the money supply d. fiscal policies are the actions taken by the president and congress to regulate the amount of money consumers will be able to borrow

a. monetary policy is what the FRB engages in when it attempts to influence the money supply

Just as markets can be influenced by many factors, so can the market price of a single company's stock. While all of the following could impact a company's stock price to some extent, which would be the least likely to have a direct and immediate impact? a. political elections b. changes in the business cycle c. the company's earnings d. Federal Reserve Board policies

a. political elections

The Federal Reserve is concerned that the economy is slowing. Which of the following actions would the Fed most likely engage in? a. pursue an easy money policy to lower interest rates b. engage in open market sales of T-bills c. double the reserve requirements for member banks d. raise the margin requirements under Reg. T

a. pursue an easy money policy to lower interest rates

A registered securities broker-dealer that does not comply with FINRA and SEC rules and regulations is subject to each of the following sanctions EXCEPT: a. reductions in SIPC coverage b. limits on activities, functions, or operations c. censure d. partial or full suspension of its registration

a. reductions in SIPC coverage

Tighter credit will a. slow economic expansion, preventing inflation b. stimulate the economy, fueling expansion c. stimulate the economy, preventing expansion d. slow economic expansion, fueling inflation

a. slow economic expansion, preventing inflation

A stock's market value is directly determined by which of the following? a. supply and demand b. board of directors c. vote of the stockholders d. company's financial condition

a. supply and demand

A member of the Federal Reserve System wanting to increase its reserves could do so by borrowing money from a. the Federal Reserve Board at the discount rate b. another FRB member bank at the discount rate c. the FRB at the federal funds rate d. another FRB member bank at the prime rate

a. the Federal Reserve Board at the discount rate

When engaging in open-market operations, taking actions to either expand or contract the money supply, the FRB will buy or sell a. treasury securities b. corporate bonds c. corporate equity securities d. US government agency securities

a. treasury securities

An issuer that is already a publicly traded company wants to register new securities without selling any of the shares until later when it anticipates it will be retooling all of its existing manufacturing plants. Which of the following applies? a. this can be accomplished by utilizing an additional issue offering, which is specifically for publicly trade companies wanting to register new shares to be issued later. b. this can be accomplished by utilizing a shelf registration specifically designed to register shares presently to be sold later. c. this cannot be done because newly registered securities must be made available for sale immediately d. this can be accomplished by utilizing a new initial public offering, which is necessary for registration of all new shares.

b. this can be accomplished by utilizing a shelf registration specifically designed to register shares presently to be sold later.

According to the US Commerce Department, the economy is in a recession when a decline in rea output of goods and services lasts a. beyond 12 months b. 9 months or more c. 6 months or more d. 18 months or more

c. 6 months or more

The Securities Exchange Act of 1934 allows for the creation of self-regulatory organizations (SROs) to write and in some instances enforce compliance by its member firms and persons associated with its member firms. Which of the following is NOT an SRO registered with the SEC? a. FINRA b. MSRB c. DTC d. CBOE

c. DTC

Which of the following would be applicable to non-exempt securitites (those that must be registered) being offered to the public by a corporate issuer? I. Securities Act of 1933 II. Prospectus III. Securities Act of 1934 IV. Secondary Market a. II & IV b. III & IV c. I & II d. II & III

c. I & II

With regards to fiscal policy, it would be CORRECT to state that I. fiscal policy is considered the most efficient means to solve short-term economic problems II. fiscal policy is not considered the most efficient means to solve short-term economic problems III. fiscal policy refers to governmental budget decisions enacted by our president and congress IV. fiscal policy refers to government budget decisions enacted by our president and the cabinet a. I & IV b. II & IV c. II & III d. I & III

c. II & III

For those who follow monetary theory, which if the most complete measure of the money supply? a. M1 + M2 b. M2 c. M3 d. M1

c. M3

Money available to lend to corporations and consumers is impacted most in the United States by the policies of which of the following? a. The National Securities Clearing Corporation (NSCC) b. The Securities and Exchange Commission (SEC) c. The Federal Open Market Committee (FOMC) d. The Internal Revenue Service (IRS)

c. The Federal Open Market Committee (FOMC)

A business entity that performs the function of receiving and delivering payments and securities on behalf of both parties to a securities transaction is called a. a broker-dealer b. depository c. a clearing-agency d. a transfer agent

c. a clearing-agency

All of the following would decrease the US balance of payments deficit EXCEPT a. an increase in exports of domestic goods for the US b. a decrease in imports of foreign goods into the US c. a decrease in purchases of US securities by foreign investors d. a decrease in dividend payments by US companies to foreign investors

c. a decrease in purchases of US securities by foreign investors

Which of the following transactions represents the greatest potential risk to an investment banker? a. a spin-off b. a best efforts IPO c. a firm commitment offering d. a stock split

c. a firm commitment offering

An issuer that is already a publicly traded company wants to register new securities without selling any of the shares until later when it anticipates it will be retooling all of its existing manufacturing plants. Which of the following applies? a. this cannot be done because newly registered securities must be made available for sale immediately b. this can be accomplished by utilizing a new initial public offering, which is necessary for registration of all new shares c. this can be accomplished by utilizing a shelf registration specifically designed to register shares presently to be sole later d. this can be accomplished by utilizing an additional issue offering, which is specifically for publicly traded companies wanting to register new shares to be issued later

c. this can be accomplished by utilizing a shelf registration specifically designed to register shares presently to be sole later

FINRA regulates al matters related to investment banking, including a. trading in commodities markets b. trading in the futures markets c. trading in the OTC market d. trading in fixed annuities

c. trading in the OTC market

GEMCO Oil and Gas, listed on the NYSE, wishing to sell up to $300 million of convertible debt as market conditions permit, files a shelf registration statement with the SEC. Which of the following statements are TRUE? I. for securities offered via a shelf registration, a supplemental prospectus must be filed with the SEC before each sale II. the registration statement is effective upon completion of the cooling-off period III. shelf registration allows this issuer to sell portions of a registered shelf offering over a 2-year period without having a re-register the security. IV. shelf registration allows this issuer to sell portions of a registered shelf offering over a 3-year period without having to re-register the security. a. I & III b. II & IV c. II & III d. I & IV

d. I & IV

The SEC has established rules regarding delivery of a prospectus when a secondary market transaction occurs after the effective date. Which of the following statements comply with those rules for initial (IPO) and additional (APO) public offerings? i. An IPO of a stock to be listed on the NYSE requires delivery for a period of 25 days. ii. An IPO of a stock that will not be listed nor quoted over NASDAQ requires delivery for a period of 40 days. iii. An APO of a stock listed on the NYSE requires delivery for a period of 25 days. iv. An APO of a stock that will not be listed nor quoted over NASDAQ requires delivery for a period of 40 days. a. I & II b. III & IV c. II & III d. I & IV

d. I & IV

Fiscal policy I. is the most efficient means for solving short-term economic issues II. is not considered the most efficient means to solve short-term economic issues III. is reflected in the budget decisions enacted by our president and congress IV. is reflected in the money supply decisions enacted by the Federal Reserve Board a. II & IV b. I & III c. I & IV d. II & III

d. II & III

According to economists which of the following is correct characterization of the money supply? a. M1 plus M2 equals M3 b. M2 equals M1 plus M3 c. M1 includes all of M2 and M3 d. M3 includes all of M1 and M2

d. M3 includes all of M1 and M2

Recent reports indicate that the gross domestic product (GDP) has been declining steadily over the past 2 quarters. This would suggest a. an economic expansion b. a depression c. an inflationary period d. a recession

d. a recession

When a bank lends money to a broker-dealer for the purpose of lending to margin account customers, the bank is lending at which of the following rates? a. discount b. prime c. federal funds d. broker call loan

d. broker call loan