Brokers'calls
A) are funds used by individuals who wish to buy stocks on margin.
B) are funds borrowed by the broker from the bank, with the agreement to repay the bank immediately if requested to do so.
C) carry a rate that is usually about one percentage point lower than the rate on U.S. T-bills.
D) are funds used by individuals who wish to buy stocks on margin and are funds borrowed by the broker from . the bank, with the agreement to repay the bank immediately if requested to do so.
E) are funds used by individuals who wish to buy stocks on margin and carry a rate that is usually about one percentage point lower than the rate on U.S. T-bills.

Question

Brokers'calls
A) are funds used by individuals who wish to buy stocks on margin.
B) are funds borrowed by the broker from the bank, with the agreement to repay the bank immediately if requested to do so.
C) carry a rate that is usually about one percentage point lower than the rate on U.S. T-bills. 
D) are funds used by individuals who wish to buy stocks on margin and are funds borrowed by the broker from . the bank, with the agreement to repay the bank immediately if requested to do so.
E) are funds used by individuals who wish to buy stocks on margin and carry a rate that is usually about one percentage point lower than the rate on U.S. T-bills.

Quizplus · Accepted Answer

Brokers'calls are funds borrowed from banks by brokers and loaned to investors in margin accounts.