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NEW QUESTION: 1
Which of the following credit arrangements would most likely be considered a purpose credit because it is indirectly secured by margin stock?
A. A loan made to purchase margin stock secured by nonmargin stock
B. A loan made to purchase margin stock, guaranteed by an individual who has pledged margin stock as security for the guarantee
C. Bank is the trustee for a qualified pension plan from which the participants may borrow and use their interest in the plan as security; a participant borrows money for the purpose of purchasing margin stock
D. A loan made to a company for various corporate purposes, including the purchase of margin stock, secured by the corporate assets, which from time to time include margin stock; on the date of the consummation of the transaction approximately 10 percent of the assets of the company are margin stock