Which of the Following Statements Best Describes Marking to Market

question 28

Multiple Choice

Which of the following statements best describes marking to market?

• A)The process of personalising futures contracts.
• B)The final day on which trading occurs in a particular contract.
• C)The requirement of a futures exchange for daily cash settlement of all contracts.
• D)The process of setting up a contract with a clearinghouse to operate as counterparty between the buyer and seller of a futures contract.

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Definitions:

UCC

The Uniform Commercial Code, a set of comprehensive statutes designed to unify and standardize sales and commercial transactions in all 50 states.

Counteroffer

A new offer made in response to an offer received, implying rejection of the original offer.

Finance Charge

the total cost, expressed as a monetary amount, of borrowing credit, including interest, fees, and any other charges associated with the transaction.

Rejection

The refusal to accept or agree to something, such as a proposal, offer, or contract.