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The Primary Advantage to the Investor of a Securities Firm

Question 93

Multiple Choice

The primary advantage to the investor of a securities firm cash management account (CMA) over commercial bank deposit accounts is that


A) no FDIC insurance is required on CMAs.
B) no regulatory oversight of CMAs.
C) they make it easier to buy and sell securities using funds from the CMA.
D) CMAs guarantee higher rates of return than money market deposit accounts.
E) Regulation Q interest rate ceilings do not apply to CMAs.

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