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Rama09 [41]
3 years ago
13

A customer opens a margin account by purchasing 100 shares of ABC at $60 per share, depositing the 50% Regulation T requirement.

The stock rises to $80 per share on the next day and then falls to $60 per share on the day after. The account will now show:
Business
1 answer:
Scilla [17]3 years ago
5 0

Answer:

Account Balance in margin account:

Investment = $6,000 (100 x $60)

The customer's account will first increase with an unrealized gain of $2,000 ($80 - 60 x 100) on the next day.  It will then decrease with an unrealized loss of $2,000 ($80 - 60 x 100) on the day after.  This cancels the earlier unrealized gain.

Explanation:

The customer's investment will now show a balance of $6,000 with a contra account showing a debt of $3,000 for the balance of the Regulation T margin account.  According to investopedia, "A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products.  The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate."

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If there is an unanticipated increase in aggregate demand, which of the following is most likely to occur?
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Answer:

A. an increase in the price level (inflation)

Explanation:

When there is an unanticipated increase in aggregate demand it usually result in the general increase in the price level of that good demanded (inflation). This is because when there is an unpredicted increase in demand for a good, the demand becomes higher than the supply for that good at that particular period. Because the supply is now less than the aggregate demand, the prices of the commodity is then increased to discourage demand. The increase in the price of the commodity (inflation) therefore is a direct result from the increase in the aggregate demand for that commodity.

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Answer:

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2 years ago
Cannonier, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,040 2 1,270 3 1,490 4
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Answer:

Total FV= $7,313.7

Explanation:

Giving the following information:

Year Cash Flow 1 $ 1,040 2 1,270 3 1,490 4 2,230

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3 years ago
6. Many supermarkets carry plain packages that only identify the name of the product that is inside. For example, a label may re
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Answer:

generic goods.

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