The Margin Requirement Set by the Federal Reserve Is the

question 56

Multiple Choice

The margin requirement set by the Federal Reserve is the

• A)proportion of the purchase price of a security that an investor must pay in cash.
• B)difference between the interest rate banks may charge on loans and the interest rate they receive from deposits.
• C)same thing as the required reserve ratio on deposits.
• D)difference banks must maintain between the value of their assets and the value of their liabilities.

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