When the Initial Margin Requirement Is Lowered from 70% to 40

question 80

Multiple Choice

When the initial margin requirement is lowered from 70% to 40%, this change means

• A) The OSC is officially recognizing that the stock market is too tight
• B) Your broker may now arrange for a 60% loan on the value of stock collateral
• C) The maintenance margin will also decline by 10%
• D) Credit to finance stock purchase is less available that previously
• E) Stock purchases will probably not pay lower interest rates on their accounts

---

Definitions:

Progress Invoices

Invoices that bill clients for partial amounts of an ongoing project or order, aligning with stages of work completion.

Standard Invoices

Invoices that list the products or services purchased, their prices, and the total amount due, typically used in regular business transactions.

Estimates Icon

A visual symbol or button in software applications that allows users to create or access estimates for goods or services.

Company Preferences

Configurations or settings chosen by a business to customize how their software applications operate to best meet their organizational needs.