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Determination of Income and Employment — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsDetermination of Income and Employment1 Mark
MCQ
During excess demand, Central Bank will:
  • ✓
    Increase margin requirement.
  • B
    Decrease margin requirement.
  • C
    Keep margin requirement constant.
  • D
    Keep margin requirement zero.
✓

Answer

Correct option: A.
Increase margin requirement.
Margin requirement is the difference between the market value of securities provided by the borrower and the amount of loan granted to him.

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