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Business, 18.02.2020 20:08 sparksjesse2830

Mr. Smith has been considering the purchase of a mutual fund and has decided he wants to buy $8,000 of the fund but only has $4,000 to invest now. He asks you, his registered representative, to lend him the other $4,000 which he will repay in 2 months. Which of the following is correct about this situation?

[A] The rep may lend the customer the funds as long as the agreement is in writing.
[B] The rep should establish a margin account for the customer and buy the fund shares on margin.
[C] The rep must deny the customer's request for a loan.
[D] The rep may lend the customer funds with the firm's prior approval.

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