SIE practice questionmediumRegulation T
A customer opens a margin account and buys $20,000 of stock. According to Federal Reserve Regulation T, what is the minimum initial margin deposit required?
- A$5,000
- B$10,000✓ Correct answer
- C$20,000
- D$2,000
Explanation
Why B — $10,000
Regulation T requires a 50% initial margin deposit, so $10,000 on $20,000. $5,000 and $2,000 are less than required; $20,000 would be 100% and only required in cash accounts.
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