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

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Definitions:

Arcuate

Describing something as having a curved shape or structure, often used in biological and anatomical contexts.

Interlobar Arteries

Blood vessels that run between the lobes of an organ, such as the kidneys, facilitating blood flow.

Renal Pyramid

Cone-shaped tissues of the kidney that are involved in urine transport and formation.

Peritoneal

Relating to or affecting the peritoneum, the serous membrane lining the cavity of the abdomen and covering the abdominal organs.