SIE Exam Question 986: Answer and Explanation

Question: 986

Which of the following refers to the cash held in an investor's margin account at a broker-dealer that can be withdrawn at any time? It may include interest, dividends, and coupon payments.

• A. Average daily balance
• B. Free credit balance
• C. Liquidation margin
• D. Margin balance

Correct Answer: B

Explanation:

The free credit balance refers to the cash held in an investor's margin account at a broker-dealer that can be withdrawn at any time. It may include interest, dividends, and coupon payments.