Many a times we read in the newspapers about margin requirements. Which of the following correctly indicates margin requirements?
Q. Many a times we read in the newspapers about margin requirements. Which of the following correctly indicates margin requirements?
Answer: Margin requirements imply to a cushion against the decline in the value of the security
Notes: Option 1: Quantitative control aim at the regulation of the volume of credit as well as flow of the credit, qualitative control aim at the regulation of flow of the credit. Option 2 : every bank has to keep certain minimum cash reserves with the reserve bank of India - Cash Reserve Requirements, 3- every bank has to keep certain proportion of its total deposits in the form of cash with it self-Statutory Liquidity ratio, Option 4 - certain rate at which it discounts the bills of exchange of the commercial bank -Bank Rate .