Which One of the Following Statements Is True

question 30

Multiple Choice

Which one of the following statements is true?

• A)The maintenance margin is the amount of money you post with your broker when you buy or sell a futures contract.
• B)If the value of the margin account falls below the maintenance-margin requirement, the holder of the contract will receive a margin call.
• C)A margin deposit can only be met with cash.
• D)All futures contracts require the same margin deposit.

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Definitions:

Expected Frequency

The predicted frequency of occurrences in a category based on the application of a statistical model or the distribution assumption.

Chi-Square

A statistical method employed to assess whether a notable difference exists between the frequencies that are observed and those that are anticipated across one or more categories.

Row Variable

A variable represented by rows in a table or matrix, often used to define or categorize the data horizontally.

Column Variable

A variable represented by columns in a dataset, where each column contains values of the variable for each observation.