The margin requirement is

the part of a security's value that a bank does not lend against itCorrect answerYour answerthe profit margin of a bankCorrect answerYour answerthe difference between the repo and reverse repo ratesCorrect answerYour answerthe share of deposits kept with the RBICorrect answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

If the margin is 30% on gold worth ₹1 lakh, the bank lends only ₹70,000.

Concept: Margin requirement
Typical timeTypical: 40 s
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The rule this testsMargin requirements and moral suasion

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The margin requirement is

Explanation