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Basic Question 9 of 16
The interest rate at which brokerage firms borrow funds from banks to use in margin lending is called the ______.
B. prime lending rate
C. call money rate
A. margin rate
B. prime lending rate
C. call money rate
User Contributed Comments 2
| User | Comment |
|---|---|
| kalps | Broker call loan rate or the call money rate |
| sarath | Brokers are charged at the call money rate...from the banks for margin loans... but the brokers themselves charge a higher amount than that to the client.. |
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Learning Outcome Statements
compare positions an investor can take in an asset
calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call
CFA® 2024 Level I Curriculum, Volume 3, Module 1.