€ 30.48

FP 513 EXAM 2024 WITH 500 ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS ALREADY GRADED A / FP 513 PRACTICE QUESTIONS AND ANSWERS FOR CFP CERTIFICATION (GUARANTEED PASS)

FP 513 EXAM 2024 WITH 500 ACTUAL EXAM  QUESTIONS AND CORRECT ANSWERS  ALREADY GRADED A / FP 513 PRACTICE  QUESTIONS AND ANSWERS FOR CFP  CERTIFICATION (GUARANTEED PASS)

FP 513 EXAM 2024 WITH 500 ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS ALREADY GRADED A / FP 513 PRACTICE QUESTIONS AND ANSWERS FOR CFP CERTIFICATION (GUARANTEED PASS)
A money market mutual fund manager recently purchased negotiable, short-term,
unsecured promissory notes issued by a number of large corporations for the
portfolio. Select the type of investment the money manager purchased. -
ANSWER-Commercial paper:
Commercial paper is usually issued in denominations of $100,000 or more and is a
substitute for short-term bank financing. Commercial paper is normally sold at a
discount and is rated for quality by a rating service.
Your client has just opened a margin account with your brokerage firm and
purchased 500 shares of stock for $60 per share. The firm has a 55% initial margin
and 35% maintenance margin policy. Calculate the stock price at which your client
will receive a margin call. - ANSWER-The client will receive a margin call when
the price of the stock drops to $41.54, calculated as follows:
margin call = ($60 × 0.45) ÷ (1 - 0.35)
margin call = $27.00 ÷ 0.65 = $41.5385, or $41.54
Which of the following would be held in a money market portfolio?
Treasury bill
Negotiable CDs
Commericial paper - ANSWER-The answer is I, II, and III. All of these financial
instruments would be held in a money market portfolio.

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