1. Margin Calls. You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing $100,000 from your broker, who requires a maintenance margin of 30 percent. Which of the following is the largest value for your stock holdings for which you will still receive a margin call?
A. $200,000
B. $160,000
C. $140,000
D. $120,000
2. When a Chinese company builds an auto plant in the United States, the immediate result of this Chinese investment in the United States is a __________ item in the U.S. __________ account.
surplus; capital
deficit; current
surplus; current
deficit; capital