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How is the maximum loan value of margin stock defined?

Answer(s): C

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

The loan will be in compliance until it is renewed, regardless of the reduction of the borrower's equity in the stock.
The loan will be in compliance only if the value of the stock remains within the margin requirements.
The loan will be in compliance unless the status of the stock changes (for example, margin or nonmargin)
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.

Answer(s): D

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

The loan will be in compliance until it is renewed, regardless of the reduction of the borrower's equity in the stock.
The loan will be in compliance only if the value of the stock remains within the margin requirements.
The loan will be in compliance unless the status of the stock changes (for example, margin or nonmargin)
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.

Answer(s): D

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

The loan will be in compliance until it is renewed, regardless of the reduction of the borrower's equity in the stock.
The loan will be in compliance only if the value of the stock remains within the margin requirements.
The loan will be in compliance unless the status of the stock changes (for example, margin or nonmargin)
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.

Answer(s): D