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The Federal Reserve tries to limit margin trading using which of the following techniques?

The Federal Reserve tries to limit margin trading using which of the following techniques?

A.

Setting a maximum leverage ratio as a multiple of capital posted for margin trading

B.

By using the discount window

C.

By using open market operations to mop up extra liquidity in the system

D.

Setting limits on margin trading is not a part of the Federal Reserve's remit.

PRMIA 8013 Summary

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  • Product: 8013
  • Update on: Jul 29, 2025
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