The Call Money Rate Is the

question 12

Multiple Choice

The call money rate is the

• A) Rate at which you borrow money to make a margin purchase
• B) Percentage of a security's value that must be paid to a broker when you receive a marginal call
• C) Percentage interest rate that must be paid on any margin shortfall until the brokerage firm receives the funds requested in a margin call
• D) Rate at which the brokerage firm borrows funds that are subsequently loaned to margin customers
• E) Minimum percentage rate of equity that must be maintained at all times

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Definitions:

Unity of Command

A principle in management and organizational design that mandates each employee is accountable to one and only one supervisor, ensuring clear instruction and direction.

Locus of Control

A psychological concept that describes the degree to which individuals believe they have control over the outcomes of events in their lives.

Departmentalization

The process of dividing an organization into different departments, which perform specific functions or tasks.

Geographical

Relating to the natural features, population, industries, etc. of different regions of the Earth.