When the Federal Reserve System sets a new margin requirement, it is regulating the
A) commercial bank industry.
B) credit unions.
C) buying of securities.
D) savings and loan associations.
E) national banks.

Question

Quizplus · Accepted Answer

When the Federal Reserve System sets a new margin requirement, it is regulating the buying of securities. Margin requirement is the percentage of the cost of securities that an investor must pay for with cash or other assets. A change in the margin requirement can affect the amount of credit available for investors to buy securities, thus impacting the overall buying of securities in the market.

When the Federal Reserve System Sets a New Margin Requirement