INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 107

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-The most expensive method of determining finance charges on revolving credit would be [two cycle ADB w/purchases | ADB excluding purchases].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Marking to Market

The process of updating the value of an asset to its current market levels for accounting and regulatory purposes.

Future Positions

Contracts to buy or sell a specific quantity of a commodity, currency, or financial instrument at a predetermined price at a future date.

Daily Settlement

The process of settling trades at the end of each trading day, including the calculation of gains and losses.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, in order to keep the account open.