Which One of the Following Statements Is True

question 36

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.
• E) The maintenance margin is set by the producer of the underlying asset.

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Definitions:

Service Rate

The speed at which a service provider can deliver its service to customers.

Waiting Line

Refers to the process where customers or items wait in line for service or processing, commonly studied to improve efficiency in operations management.

Negative Exponential Distribution

A continuous probability distribution concerning time between events in a Poisson point process, representing the likelihood of wait times or life spans.

Service Time

The amount of time taken to complete a service for a customer, from initiation to completion.