Certified Regulatory Compliance Manager (CRCM) — Question 49

Purpose credit is credit for all of the following EXCEPT:

Answer options

• 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

Correct answer: D

Explanation

The correct answer is D, as 'Accidental purpose' does not align with the defined purposes of credit in the context of margin stock. The other options (A, B, and C) refer to valid purposes associated with the use of credit for margin stock transactions.