Give reason or Explain
Margin requirement determines the value of loan.

Open in App

Solution

B: Margin requirement refers to the difference between the current value of the security offered for loan (called collateral) and the value of loan granted. If the margin requirement is high, then the value of the loan will be low and if the margin requirement is low, then value of the loan will be high. Therefore, Margin requirement determines the value of the loan. '

Suggest Corrections

Similar questions

Q. Give Reasons or Explain the following:
Margin requirement determines the value of loan.

Q. Give Reason Or Explain the following statements.
Every loan creates a deposit or commercial banks can create deposits through loan.

Determine whether an inclusive 'OR' or exclusive 'OR' is used in the following statement. Also, give reason for your answer.

"All integers are positive or negative."

Determine whether an inclusive 'OR' or exclusive 'OR' is used. Also, give reason for your answer. 'Students can take Hindi or Sanskrit as their third language'.

Determine whether an inclusive 'OR' or exclusive 'OR' is used in a statement, also give reason for your answer.

'Two lines intersect at a point or parallel'.

Join BYJU'S Learning Program

Give reason or ExplainMargin requirement determines the value of loan.

Give reason or Explain
Margin requirement determines the value of loan.