Megan bought 200 shares of stock at a price of $10 a share. She used her margin account with a 75% initial margin to make the purchase. After a year, the price of the stock is $12 a share. What is the new debit in her account?

1. 		$2000
   		$2400
   		$500
   		$1900

QUESTION 14

1. Megan bought 200 shares of stock at a price of $10 a share. She used her margin account with a 75% initial margin to make the purchase. After a year, the price of the stock is $12 a share. What is the new margin on her account?

   		89%
   		79%
   		74%
   		84%

QUESTION 15

1. Megan bought 200 shares of stock at a price of $10 a share. She used her 75% margin account to make the purchase. Megan sold her stock after a year for $12 a share. Ignoring margin interest and trading costs, what is Megan's rate of return for this investment? (Round to the nearest percent)

   		27%
   		20%
   		67%
   		17%

QUESTION 16

1. If an investor does not respond to a margin call, the broker will

   		sell some of the investor's holdings to cover the margin call.
   		sell all of the investor's holdings and close their brokerage account.
   		sell enough of the investor's holdings that the margin account can be closed.
   		notify the Federal Reserve so they can cover the call.