the difference between the amount of loan and market value of security offered by bro against the loan is called
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Explanation:
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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Answer:
The difference between the amount of loan and market value of security offered by bro against the loan is called the margin.
Explanation:
- The minimal amount of securities that an investor must purchase with their own money is known as a margin requirement.
- The "margin" for commercial banks is set by the central bank (RBI), who also has the authority to set the maximum amount that a buyer of securities may borrow against such assets.
- As a result, as the margin requirements change, the loan amounts that are available also vary.
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