Question

What is the formula for calculating the market value at maintenance for a short margin account?

A) (Total Asset Value - Debit Balance).
B) (Total Asset Value + Credit Balance).
C) (Total Asset Value / Debit Balance).
D) (Total Asset Value x Debit Balance).

Answer 1

The correct formula for calculating the market value at maintenance for a short margin account is A) (Total Asset Value - Debit Balance).

Step-by-step explanation:

The formula for calculating the market value at maintenance for a short margin account is not directly provided in the common equations listed, but typically, the maintenance margin is calculated using the following type of formula: (Total Asset Value - Debit Balance). This means that out of the options provided, A) (Total Asset Value - Debit Balance) would be the correct choice.

It's worth noting that the formulas related to M1 and M2 money supply, savings investment, and the trade deficit are from different finance and economics concepts, so they are not relevant to calculating the market value for a short margin account. The savings investment formula solving for the trade deficit or surplus, for example, does not apply to the topic of short margin accounts.