Final answer:
Carrying firms are required to maintain a higher net capital than firms that do not accept custody of funds or securities.
Step-by-step explanation:
Carrying firms are required to maintain a higher net capital than that of firms who do not accept custody of funds or securities.
Net capital is the difference between a firm's assets and liabilities. It represents the amount of funds a firm has available to cover its obligations and provide a cushion against potential losses.
This requirement ensures that carrying firms have sufficient financial resources to safely handle customer funds and securities.