What Is the Maximum Amount of Margin Debt That the Federal

question 17

Multiple Choice

What is the maximum amount of margin debt that the Federal Reserve allows one to borrow?

• A)50% of the fair market value of the securities on margin upon original purchase and 25% of the value of the collateral on an ongoing basis.
• B)25% of the fair market value of the securities on margin upon original purchase and 25% of the value of the collateral on an ongoing basis.
• C)25% of the fair market value of the securities on margin upon original purchase and 50% of the value of the collateral on an ongoing basis.
• D)75% of the fair market value of the securities on margin upon original purchase and 25% of the value of the collateral on an ongoing basis.
• E)None of the above.

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