The Federal Reserve controls the minimum amount that a purchaser of securities must deposit with a stock brokerage firm in order to purchase stock.This minimum amount is called the _____ requirement.

Question

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The minimum amount that a purchaser of securities must deposit with a stock brokerage firm to purchase stock is called the margin requirement. This is a part of the Federal Reserve's regulation to ensure financial stability and manage the amount of credit that is available in the economy.

The Federal Reserve Controls the Minimum Amount That a Purchaser