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InstructionMultiple Choice

The Roaring Twenties

Question 1 • OK-Oklahoma History -CA- 37411A

Which of the following phrases signifies the purchase of stock using borrowed money?

Answer
A
buying on margin
B
buying on reserve
C
buying on the edge
D
buying on formula

Explanation

Buying stock with money borrowed from a broker is called buying on margin. The borrowed money lets an investor purchase more shares than they could afford using their own cash alone. Therefore, the correct choice is “buying on margin.”

AI-written and checked against the verified answer.

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