The margin requirement set by the Federal Reserve is the
A) proportion of the purchase price of a security that an investor must pay in cash.
B) difference between the interest rate banks may charge on loans and the interest rate they receive from deposits.
C) same thing as the required reserve ratio on deposits.
D) difference banks must maintain between the value of their assets and the value of their liabilities.
A
You might also like to view...
The price of an airline ticket from Denver to Chicago costs $450. A bus ticket costs $150. Traveling by plane takes 2 hours compared with 32 hours by bus. Other things constant, Erica would gain by choosing air travel if, and only if, she values her time at more than
A) $5 per hour. B) $300 per hour. C) $10 per hour. D) $9.38 per hour.
The government places a price control on cell phones, saying that companies cannot charge more than $300 per phone. Considering this, what would be the most likely result?
a. an equilibrium of cell phones b. a recall of cell phones c. a surplus of cell phones d. a shortage of cell phones
The Depository Institutions Deregulation and Monetary Control Act of 1980
A. made the Federal Reserve's job of managing the money supply a lot easier. B. made the Federal Reserve's job of managing the money supply a lot harder. C. had no effect upon the Federal Reserve's job of managing the money supply.
Economists agree that income in the U.S. should be more equally distributed
Indicate whether the statement is true or false