9
QuizMultiple Choice

Global Economic Crisis — Quiz

Question 9 • World History CR

The term “on margin” means

Answer
A
paying a high-interest rate on a bank or broker loan for an asset.
B
paying the balance in full for an asset with no down payment.
C
paying a loan back for an asset only after profiting from a trade.
D
paying the down payment on an asset and borrowing the balance.

Explanation

Buying an asset “on margin” means borrowing part of the purchase price from a broker and paying the rest yourself as a down payment. For example, if an asset costs $1,000 and you put down $400, you borrow the remaining $600. Therefore, the correct choice is paying the down payment on an asset and borrowing the balance.

AI-written and checked against the verified answer.

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