Stock holdings for which you will still receive margin call

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1. Margin Calls. You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing $100,000 from your broker, who requires a maintenance margin of 30 percent. Which of the following is the largest value for your stock holdings for which you will still receive a margin call?

A. $200,000

B. $160,000

C. $140,000

D. $120,000

2. When a Chinese company builds an auto plant in the United States, the immediate result of this Chinese investment in the United States is a __________ item in the U.S. __________ account.

surplus; capital

deficit; current

surplus; current

deficit; capital

Reference no: EM131945644

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