With a Margin Requirement of 50 Percent

Multiple Choice

With a margin requirement of 50 percent,

A) a bank has to keep 50 percent of its deposits with its Federal Reserve District Bank or within its own vaults.
B) a bank can lend 50 percent of its deposits to individuals and firms.
C) an investor purchasing $6,000 in stock must pay at least $3,000 of it in cash.
D) an investor purchasing $6,000 in stock must pay at least $50 of it in cash.
E) investors must invest in something yielding a 50 percent return on their investment.