What is the maximum amount stated for security deposits or total security holdings (whichever is less)?

• A. $25,000
• B. $75,000
• C. $50,000
• D. The lesser of total holdings or $50,000

Answer: (D)

The amount is determined by a “lesser of” rule: you take your total security holdings and compare it to 50,000 dollars, and the smaller amount is the maximum allowed. So if your total holdings are 60,000, the cap is 50,000. If your total holdings are 40,000, the cap is 40,000. This setup explains why the correct description is that the maximum is the lesser of total holdings or 50,000. The fixed numbers like 25,000 or 75,000 don’t capture how the limit adjusts to your actual holdings.