Sarah has a brokerage account with Jeff, who is a money manager with Downtown Brokers. Sarah pays an all-inclusive annual fee to the firm and Jeff manages her funds. She pays no trading costs or commissions. Which one of the following best describes this type of account?
A)wrap
B)cash
C)margin
D)mutual
E)advisory

Question

Quizplus · Accepted Answer

A wrap account is one where the client pays an all-inclusive annual fee that covers all administrative, commission, and management expenses. This is the type of account Sarah has with Jeff, where she pays an annual fee and incurs no additional trading costs or commissions.

Sarah Has a Brokerage Account with Jeff, Who Is a Money