A Margin Account Is an Account in Which a Futures

question 30

True/False

A margin account is an account in which a futures trader deposits cash equal to the value of the futures contract.

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Definitions:

Discount On Notes Receivable

An amount deducted from the face value of a note to reflect the interest revenue over the term of the note.

Notes Receivable

Short-term or long-term financial assets representing amounts owed to the company that are documented through formal agreements or promissory notes.

Interest Revenue

This refers to the income that is earned from investments, loans, or savings accounts, essentially any source that pays interest.

Noninterest-Bearing Note

A promissory note that does not accrue interest over its lifetime, meaning the borrower repays only the principal amount.