Define margin requirement. What is its role in supply of money?
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Margin requirement refers to the amount of security that banks demand from the borrower of loan. To increase the money supply, the Central Bank lowers the margin rquirement but raises the margin requirement when money supply is to be curtailed. ...
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Margin requirement refers to the amount of security that banks demand from the borrower of loan. ... To increase the money supply, the Central Bank lowers the margin rquirement but raises the margin requirement when money supply is to be curtailed.
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