Asked by Victoria Hines on May 26, 2024
Verified
Initial margin requirements on stocks are set by ________.
A) the Federal Deposit Insurance Corporation
B) the Federal Reserve
C) the New York Stock Exchange
D) the Securities and Exchange Commission
Margin Requirements
The minimum amount of equity that must be maintained in a margin account.
Federal Reserve
The central bank of the United States, responsible for monetary policy, regulation of banks, and ensuring the stability of the financial system.
- Master the financial requisites, compliance standards, and protocols inherent in public offerings and securities engagements.
Verified Answer
NV
Naresh VeeravalliMay 26, 2024
Final Answer :
B
Explanation :
The Federal Reserve sets initial margin requirements on stocks as part of its regulatory functions to control the amount of credit that can be used to purchase securities, aiming to mitigate financial risk and maintain market stability.
Learning Objectives
- Master the financial requisites, compliance standards, and protocols inherent in public offerings and securities engagements.