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Exam CRCM topic 1 question 50 discussion

Actual exam question from ABA's CRCM
Question #: 50
Topic #: 1
[All CRCM Questions]

Purpose credit is credit for all of the following EXCEPT:

  • A. Immediate purpose of purchasing or carrying margin stock
  • B. Incidental purpose of purchasing or carrying margin stock
  • C. Ultimate purpose of purchasing or carrying margin stock
  • D. Accidental purpose of purchasing or carrying margin stock
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Suggested Answer: D 🗳️

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Cam22
4 months ago
Selected Answer: D
Purpose credit typically refers to credit extended for the immediate, incidental, or ultimate purpose of buying or carrying margin stock. The concept of an "accidental purpose" does not align with the regulatory definitions and considerations regarding purpose credit as outlined in financial regulations like Regulation U.
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