Which one of the following rates is used by brokerage firms as the basis for determining margin loan rates?
A)discount
B)Fed funds
C)prime
D)brokerage
E)call money

Question

Quizplus · Accepted Answer

Brokerage firms typically use the call money rate as the basis for determining margin loan rates. The call money rate is the interest rate that banks charge brokers on money that they borrow to make margin loans to customers.

Which One of the Following Rates Is Used by Brokerage