Question

A customer's restricted margin account shows the following: LMV $30,000 DB $16,000 SMA $0 If the customer sells $2,000 of securities, how much could be withdrawn from the account

Answer 1

Answer: $1000

Step-by-step explanation:

From the question, we are informed that a customer's restricted margin account shows the following: LMV $30,000 DB $16,000 SMA $0 If the customer sells $2,000 of securities.

Based on the above analysis, the customer can only withdraw $1000. This is because since $2000 worth of securities are sold, half of it which is $1000 will be credited to SMA which is the withdrawable amount.