The Difference Between a Cash Account and a Margin Account

Multiple Choice

The difference between a cash account and a margin account is:

A) A margin account allows the investor up to five days to pay for the entire purchase
B) A cash account gives the investor a 2% discount if they pay with in 10 days,or the investor has to pay the entire amount with in thirty days (2/10 net 30)
C) A margin account allows the investor to borrow a percentage of the purchase price from the brokerage firm
D) A margin account is less risky to the investor
E) a cash account requires the stock be kept registered in street name,a margin account allows the securities to be delivered to the customer.