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The of the Federal Reserve has the power to determine what the margin requirement will be for member banks?
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
What is the payment requirement for customers in a margin account according to Regulation T?
The payment requirement for customers in a margin account according to Regulation T is a minimum of 50 of the purchase price of securities bought on margin.
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.
The of the Federal Reserve has the power to determine what the margin requirement will be for member banks?
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.
Is the Securities and Exchange Commission is responsible for setting margin requirements?
Yes, the Securities and Exchange Commission (SEC) is involved in setting margin requirements, but it works in conjunction with the Financial Industry Regulatory Authority (FINRA) and the Federal Reserve. The SEC establishes regulations that govern the securities industry, while the Federal Reserve has the authority to set margin requirements for credit extended by brokers and dealers. FINRA also enforces rules related to margin trading among its member firms. Thus, margin requirements are determined through collaboration among these regulatory bodies.
