Banking · Brokers' Loans
What are 'brokers' loans' in the context of financial markets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Funds borrowed by brokers from banks or other brokers to finance various operational and client trading needs✓
- 2Subsidized government credits given to brokerage houses during economic recessions
- 3Interbank loans used exclusively to maintain minimum reserve ratios with the central bank
- 4Loans extended by individual retail brokers directly to retail investors for personal use
Correct answer
Funds borrowed by brokers from banks or other brokers to finance various operational and client trading needs
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