Asked by George Maillard Jr. on May 28, 2024
Verified
Margin requirements are set by
A) the forces of supply and demand.
B) the head officials of the New York Stock Exchange.
C) the U.S.Treasury.
D) the Federal Reserve.
Margin Requirements
Regulations set by exchanges or regulators that determine the minimum amount of equity an investor must maintain in a margin account.
Federal Reserve
The central banking system of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing financial services.
New York Stock Exchange
A leading global financial exchange where stocks and other securities are bought and sold, located in New York City.
- Understand the role of margin requirements and their setting authority.
Verified Answer
BG
Beverly GammadMay 28, 2024
Final Answer :
D
Explanation :
Margin requirements are set by the Federal Reserve. This is because the Federal Reserve has a mandate to regulate monetary policy and ensure financial stability. Setting margin requirements is one way the Federal Reserve can help regulate the amount of credit in the financial system and mitigate systemic risk.
Learning Objectives
- Understand the role of margin requirements and their setting authority.