Listen to a Business English Dialogue About Call loan rate
Lydia: Hey Paul, do you know what a call loan rate is in finance?
Paul: Hi Lydia, yes, a call loan rate is the interest rate charged on short-term loans made by banks to brokerage firms, typically used to finance margin accounts or securities purchases.
Lydia: Exactly. It’s an important rate that can fluctuate based on market conditions and the demand for credit.
Paul: That’s right. Changes in the call loan rate can have implications for investors, as it affects the cost of borrowing and can influence investment decisions.