Question
Chester Litt is buying a security through the proceeds of his borrowings from a broker. He pays interest on the loan at a rate higher
Chester Litt is buying a security through the proceeds of his borrowings from a broker. He pays interest on the loan at a rate higher than the treasury rate. What do you call this interest rate that Chester pays to the broker?
a. Maintenance margin
b. call money rate
c. Initial margin requirement
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b Call money rate is the interest rate on the loan taken by the investor ...Get Instant Access to Expert-Tailored Solutions
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Thermodynamics An Interactive Approach
Authors: Subrata Bhattacharjee
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130351172, 978-0130351173
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