Margin requirements on stocks are set by
A) the New York Stock Exchange.
B) the National Association of Securities Dealers.
C) the Federal Reserve System.
D) the Securities Exchange Commission.
C
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To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods where food is plotted along the horizontal axis of the indifference map. If the U.S
Congress passes an economic stimulus package that pays $300 to each person, how does this affect the budget line for each consumer? A) Makes the budget line steeper B) Makes the budget line flatter C) Parallel outward (rightward) shift D) Parallel inward (leftward) shift E) none of the above
The economy is in the horizontal portion of the AS curve, there is a liquidity trap, and investment spending is sensitive to changes in the interest rate. According to the Keynesian transmission mechanism, if the money supply increases the interest rate __________, investment spending __________, the AD curve __________ and the price level __________
A) falls; rises; shifts to the right; rises B) falls; rises; shifts to the right; remains unchanged C) does not change; does not change; does not change; does not change D) does not change; shifts to the left; does not change; rises E) rises; falls; left; falls