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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Definitions:

Arbitrary Inferences

A cognitive distortion that involves making a conclusion without supporting evidence or even despite contradictory evidence.

Automatic Thoughts

Immediate, involuntary thoughts that occur in response to a situation, often based on underlying beliefs.

Artifact Theory

A concept suggesting that observed differences in psychological testing across cultural or racial groups are the result of the tests themselves, not actual differences in the groups.

Rumination Theory

A theory suggesting that continually thinking about problems or negative thoughts without taking action can lead to or worsen depression.