If a bank makes a loan that is in compliance with Regulation U, what will be the status of the loan at its consummation?

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899604
Joined: Mon Aug 02, 2021 8:13 am

If a bank makes a loan that is in compliance with Regulation U, what will be the status of the loan at its consummation?

Post by answerhappygod »

If a bank makes a loan that is in compliance with Regulation U, what will be the status of the loan at its consummation?

A. The loan will be in compliance until it is renewed, regardless of the reduction of the borrower's equity in the stock.
B. The loan will be in compliance only if the value of the stock remains within the margin requirements.
C. The loan will be in compliance unless the status of the stock changes (for example, margin or nonmargin)
D. The loan will always be in compliance until its maturity, regardless of the reduction of the borrower's equity in the stock, provided there are no substitutions or withdrawals that adversely affect the loan value.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!

This topic has 1 reply

You must be a registered member and logged in to view the replies in this topic.


Register Login
 
Post Reply