SIE Understanding Trading, Customer Accounts and Prohibited Activities Practice Question 66

Correct Answer: B

Explanation:

B: Choice B is correct because a cash account may not be used to purchase investments by borrowing part of the purchase price. Choice A is incorrect because investments other than cash may be held in a cash account. Choice C is incorrect because no purchases on margin may be made in a cash account. Choice D is incorrect because the short sales may not be made in a cash account.