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CRCM Exam - Question 50


Purpose credit is credit for all of the following EXCEPT:

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Correct Answer: D

Purpose credit is intended for specific purposes related to the purchase or carrying of margin stock, which includes immediate, incidental, or ultimate purposes. An accidental purpose does not fit within the recognized categories of purpose credit.

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Cam22Option: D
Mar 15, 2024

Purpose credit typically refers to credit extended for the immediate, incidental, or ultimate purpose of buying or carrying margin stock. The concept of an "accidental purpose" does not align with the regulatory definitions and considerations regarding purpose credit as outlined in financial regulations like Regulation U.