Global Economic Crisis

Question 21 • LUSD-World History(B) (A-G)

The term “on margin” means

Answer

paying the balance in full for an asset with no down payment.

paying a high-interest rate on a bank or broker loan for an asset.

paying the down payment on an asset and borrowing the balance.

paying a loan back for an asset only after profiting from a trade.

Explanation

Buying an asset “on margin” means using a loan from a broker to pay part of its cost. You provide a down payment and borrow the remaining balance, so choice C is correct. It does not mean waiting to repay the loan until the trade is profitable.

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