A brokerage account in which the account holder is the sole person responsible for making transaction decisions is known as a(n) ______ account.

Question

Quizplus · Accepted Answer

A discretionary account is one in which the account holder gives permission for the broker to make transaction decisions on their behalf, while in a non-discretionary account (also known as a directed account), the account holder makes all the transaction decisions. Therefore, the correct answer is B, discretionary account. The other options refer to different types of brokerage accounts with different features and services, which may or may not involve the account holder's decision-making authority.

A Brokerage Account in Which the Account Holder Is the Sole