Examkin

Soru

Zorluk: KolayFederal Reserve Board (FRB) and Margin Regulation

Under the regulatory framework established by the Federal Reserve Board, which regulation specifically governs credit extended by commercial banks to customers who pledge securities as collateral to purchase margin stock?

  1. Regulation UCevap
  2. B
    Regulation T
  3. C
    Congressional Fiscal Policy
  4. D
    FINRA Maintenance Rules

Cevap

Regulation U governs credit extended by commercial banks for purchasing margin stock.
Regulation U was created by the Federal Reserve Board under authority of the Securities Exchange Act of 1934. It explicitly dictates credit rules and margin requirements when commercial banks lend money to customers or broker-dealers using margin stock as collateral.

Adım Adım Çözüm

1
Identify the regulator and lending institution
The scenario specifies Federal Reserve Board regulation over commercial bank credit.
Federal Reserve regulations are divided based on which type of entity extends credit for margin stock purchases.
2
Select the appropriate Federal Reserve regulation
Regulation U covers bank lending to customers and broker-dealers, while Regulation T covers credit extended by broker-dealers to customers.
Commercial bank lending using stock as collateral falls under Regulation U authority.

Anahtar Kavram

Federal Reserve Board Margin Regulations (Regulation U vs. Regulation T)
Bu soruyu puanla

Konular

Federal Reserve Board (FRB) and Margin Regulation

Bu konudan daha fazla soru