The Federal Reserve currently limits the margin rate,the amount that can be borrowed from the brokerage firm,to ________ percent.

Question

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The Federal Reserve currently limits the margin rate, or the amount that can be borrowed from the brokerage firm, to 50%. This means that an investor can borrow up to 50% of the total value of securities they want to purchase, but they must put up the other 50% as collateral. This is done to reduce the risk of investor losses and prevent excessive speculation in the market.

The Federal Reserve Currently Limits the Margin Rate,the Amount That