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What happens where there is an increase in the margin requirements.
It reduces the borrowing capacity and money supply
Encourages people to borrow more and money supply rise
No change in money supply
None of these
Margin requirement is difference between mortgage security and loan amount. Higher is the margin requirement less would be the loan amount. Less loan amount discourages the borrower to avail loan from the bank
By: santosh ProfileResourcesReport error
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