Buying on Margin Allows You to Purchase Securities Using 100

question 147

True/False

Buying on margin allows you to purchase securities using 100 percent borrowed funds.

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Definitions:

Economic Decisions

Choices made by individuals, firms, or governments regarding allocation of resources to satisfy needs and desires.

Laissez-Faire Economy

An economic system in which transactions between private parties are free from government intervention such as regulation, privileges, tariffs, and subsidies.

Self-Interest

An individual’s personal gain; the drivers of economic behavior assuming that individuals act in pursuit of their own best interests.

Free-Market System

An economic system based on supply and demand with little or no government control.