The Normal Initial Margin Requirement for Commodities or Financial Futures

question 26

True/False

The normal initial margin requirement for commodities or financial futures ususally represents about 5% of the value of the contract.

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Definitions:

Informed Citizen

An individual who is knowledgeable about societal, political, and economic issues, enabling them to participate effectively in public life.

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources.

Individual Households

Single units comprising one or more persons within an economy that make decisions about consumption, saving, and labor supply.

Inflation

The speed at which the overall price level for products and services increases, diminishing the buying power.