Question: Chester Litt is buying a security through the proceeds of his borrowings from a broker. He pays interest on the loan at a rate higher

Chester Litt is buying a security through the proceeds of his borrowings from a broker. He pays interest on the loan at a rate higher than the treasury rate. What do you call this interest rate that Chester pays to the broker?
a. Maintenance margin
b. call money rate
c. Initial margin requirement

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b Call money rate is the interest rate on the loan taken by the investor ... View full answer

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