An exempted borrower is a member of a national securities exchange or a registered broker or dealer who:
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A. B. C. D.ABC
The term "exempted borrower" refers to a borrower who is exempted from certain lending requirements under Regulation U of the Securities Exchange Act of 1934. Specifically, exempted borrowers are those who are members of a national securities exchange or a registered broker or dealer who meet certain requirements.
Option A is incorrect because maintaining at least 1,000 active accounts annually for persons other than brokers, dealers, and persons associated with brokers and dealers is not one of the criteria for being an exempted borrower.
Option B is incorrect because earning at least $10 million in gross revenues on an annual basis from transactions with persons other than brokers, dealers, and persons associated with brokers and dealers is also not a criterion for being an exempted borrower.
Option C is the correct answer because earning at least 10 percent of its gross revenues on an annual basis from transactions with persons other than brokers, dealers, and persons associated with brokers and dealers is one of the criteria for being an exempted borrower.
To summarize, an exempted borrower is a member of a national securities exchange or a registered broker or dealer who earns at least 10 percent of its gross revenues on an annual basis from transactions with persons other than brokers, dealers, and persons associated with brokers and dealers.