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Question
Name the credit control method which refers to difference between the amount of loan and market value of the security offered by the borrower against the loan.
Name the credit control method which refers to difference between the amount of loan and market value of the security offered by the borrower against the loan.
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Solution
The correct option is C Margin Requirements
Margin Requirements is the percentage of a security value that may be used a a collateral for a loan to finance its purchase. In U.S. the margin requirement is 50 percent of the value of bonds or shares.
Margin Requirements is the percentage of a security value that may be used a a collateral for a loan to finance its purchase. In U.S. the margin requirement is 50 percent of the value of bonds or shares.
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