Question

The margin requirement for stocks is set by the Federal Reserve. a. True b. False A...

The margin requirement for stocks is set by the Federal Reserve.

a. True
b. False

A purchase of 50 shares is an example of an even lot. a. True b. False

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Part 1:
This statement is true. Federal Reserve sets the margin requirement.

Part 2:
This statement is false. A purchase of 50 shares is an example of an odd lot, because the buy/sell of stocks involving less than 100 shares is called as odd lot.

Add a comment
Know the answer?
Add Answer to:
The margin requirement for stocks is set by the Federal Reserve. a. True b. False A...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Question 39 (1 point) Which of the following statements is true? O A) The Federal Reserve...

    Question 39 (1 point) Which of the following statements is true? O A) The Federal Reserve sets the target for the federal funds rate, and then uses the reserve requirement to push banks toward that target. B) The Federal Reserve does not set the federal funds rate, but it influences it through the use of its open-market operations. C) The Federal Reserve sets the federal funds rate. D) The Federal Reserve will set a higher target for the federal funds...

  • The reserve requirement sets the required percentage of vault cash plus deposits with the regional Federal...

    The reserve requirement sets the required percentage of vault cash plus deposits with the regional Federal Reserve Banks that banks must keep for their deposits. Many banks have widespread branches and ATMs. How would the existence of branches and ATMs affect the level of excess reserves (above those required) that banks are able to hold? ATMs require a lot of vault cash, thus increasing excess reserves. ATMs increase excess reserves, which increases the money multiplier. The existence of ATMs does...

  • The federal reserve conducts fiscal policy to manage inflation and maximize employment  true, false How many federal...

    The federal reserve conducts fiscal policy to manage inflation and maximize employment  true, false How many federal reserve banks are there across the united states 12 The federal reserve has various tools to impact the economy, which one(s) are listed below Raising or lowering the prime lending rates Raising or lowering the discount rate Conducts open market operations Both A and C Both B and C The fed reserve chairman is chosen by the president and is responsible for carrying out...

  • All nationally chartered banks are required to purchase bonds in their district's Fed bank. True False...

    All nationally chartered banks are required to purchase bonds in their district's Fed bank. True False QUESTION 6 Use the following to answer the next three questions. Delta Bank currently has $450 million in transaction deposits on its balance sheet. The Federal Reserve has currently set the reserve requirement at 10 percent of transaction deposits. The Federal Reserve is considering reducing the reserve requirement to 6 percent. Delta withdraws all excess reserves and gives them out as loans. Delta's customers...

  • a. BSW has 400 million in deposits on balance sheets. Fed set reserve requirement rate at...

    a. BSW has 400 million in deposits on balance sheets. Fed set reserve requirement rate at 6 percent. If Fed decreases to 4 percent show balance sheet of BSW and Feds. show full effect. Expect all loans given out b. Redo a. at using 8 percent requirement If the Federal Reserve decreases the reserve requirement to 4 percent, show the balance sheet of BSW and the Federal Reserve System just before and after the full effect of the reserve requirement...

  • 28 The Chairman or Chairlady of the Federal Reserve Bank has the power to personally order...

    28 The Chairman or Chairlady of the Federal Reserve Bank has the power to personally order an increase in the U.S. money supply. A vote by the Fed's FOMC is not needed in order to increase the nation's money supply. 2016.05 Multiple Choice This is false This is true only if both the President of the United States and treat of the Freneha bebes to increase the nation's money supply, then the FOMC no need None of the above Free...

  • 1) The Federal Reserve Board of Governors has the formal authority to: I. Officially set the...

    1) The Federal Reserve Board of Governors has the formal authority to: I. Officially set the discount rate II. Establish the reserve ratio required for all depository intermediaries III. Set the fed funds rate of interest Select one: A. I only B. I and II only C. I and III only D. II and III only E. I, II, and III 2) The designers of the Federal Reserve Act of 1913 intended the Fed to have one primary monetary tool:...

  • 18. Suppose the Federal pose the Federal Reserve opted to implement monetary policy by decreasing the...

    18. Suppose the Federal pose the Federal Reserve opted to implement monetary policy by decreasing the interest id on excess reserves. This would be an example of a. Expansionary monetary policy b. Contractionary monetary policy c. Discretionary monetary policy d. Exemplary monetary policy 19, A policy decision by the Federal Reserve to sell short-run U.S. securities out of the New York branch would be an example of a. Expansionary monetary policy through decreasing the federal funds rate b. Contractionary monetary...

  • ne Lert.20.12 C OLELLIP Question 7 (1 point) True or false: The Federal Reserve currently insures...

    ne Lert.20.12 C OLELLIP Question 7 (1 point) True or false: The Federal Reserve currently insures up to $250,000 worth of losses per person in an individual account at any one banking institution. True False Question 8 (1 point) A finance charge represents the total amount of what elements? O Fees Interest Both interest and fees Interest fees and principal

  • True/False (True=A, False-B) 1. Market value ratios provide management with an indication of how investors view...

    True/False (True=A, False-B) 1. Market value ratios provide management with an indication of how investors view the firm's past performance and especially its future prospects. T 2. An odd lot is defined as purchase or sale of less than 100 shares of a stock. 3. A bid is an asking (selling) price of a specialist or a market maker. 4. A Mutual Fund is an example of a buy side firm. 5. Commercial banks are depository institutions. 6. Financial institutions...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT