Margin requirements (one of the Fed's minor tools) set the minimum amount of cash that must be invested to purchase:

A. a house
B. an office building
C. securities
D. any real estate



Answer :

Final answer:

Reserve requirements in banking regulation set by the Federal Reserve influence bank behavior and financial stability.


Explanation:

Reserve Requirements in Banking Regulation

Reserve requirements are the minimum amount of funds banks must keep on hand and not lend out to ensure stability. This tool influences bank behavior and is set by the Federal Reserve. Banks must also comply with capital requirements and investment restrictions under bank regulation.


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