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The of the Federal Reserve has the power to determine what the margin requirement will be for member banks?
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∙ 14y ago
Board of Governors
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∙ 14y ago
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What office of the Federal Reserve has the power to determine what the margin requirement will be for member banks?
ANSWER:board of governors
What is a margin buyer?
With regards to securities markets, a margin buyer is a person who only puts up a portion of the cost for buying securities. The rest of the funds required is borrowed. The "margin" of what percentage is required is set by a governing body. In the US, the margin requirements are set by the Federal Reserve Bank of NY.
If the Federal Reserve Board decides there is a danger of inflation due to excessive speculation of the stock exchanges it may raise the margin requirements?
MONETARY POLICY
Can you buy IPO's on margin?
The Federal Reserve Board made it illegal after the Great Depression to buy new issues (Initial Public Offerings, or IPOs) using margin, or credit, from IPO debut date and for 30 days after the IPO's first day of public trading.
Which of these reasons was most likely the single cause of the stock market crash?
margin requirement
What office of the Federal Reserve has the power to determine what the margin requirement will be for member banks?
ANSWER:board of governors
Which of these officers of the Federal Reserve has the power to determine what the margin requirement will be for member banks?
Board of Governors
Why did the federal reserve try to regulate margin loans and why were it's efforts only partly successful?
The Federal Reserve tried to regulate margin loans to gain control of margin requirements for stocks bought on margin. Regulation T gives the Federal Reserve the authority to change the percentage of the initial margin requirement for margin stock. Since 1974 the Federal Reserve has not deemed it necessary to adjust the margin requirement
What office of the federal has the power to determine what the margin requirement will be for member banks?
ANSWER:board of governors
Who has the power to determine what the margin requirement will be for the member banks?
Usually the Central Banks of each country decide such margin requirements. Ratios like Cash Reserve Ratio, Liquidity Ratio etc are set by the Central Banks like Reserve Bank of India or Federal Reserve of USA. All member banks are expected and supposed to follow these guidelines set by the central banks.
When was the Federal Reserve given the authorization for setting margin rates for the purpose of borrowing to buy securities?
In the year 1934 the Securities Act gave the Federal Reserve gave authorization for setting margin. A margin is borrowing and buying securities.
Who has the power to determine what the margin requirement will be for the banks?
Board of Governors A+ class Damian=P
What does the Federal Reserve Bank of New York do to decrease the amount of stock purchased on margin?
Buy Back
Toward the end of the 1920's what was the main goal of the Federal Reserve's policies with regard to buying on margin?
to make it more difficult and more expensive to offer margin loans to investors.
What agency sets the margin rates for purchasing stock in the us?
Securities and Exchange Commission (SEC)This answer is wrong.The correct answer is below.The Federal Reserve Bank of New York sets the margin rates or in other words the percentage of money that can be borrowed from a securities dealer when buying stocks on margin. As example, the NY Federal Reserve Bank may allow customers of a securities firms to put up only 50% of the cost of a stock purchase.
What is a margin buyer?
With regards to securities markets, a margin buyer is a person who only puts up a portion of the cost for buying securities. The rest of the funds required is borrowed. The "margin" of what percentage is required is set by a governing body. In the US, the margin requirements are set by the Federal Reserve Bank of NY.
If the Federal Reserve Board decides there is a danger of inflation due to excessive speculation of the stock exchanges it may raise the margin requirements.?
MONETARY POLICY
