Which of the Following Is a Typical Example of a Fixed

question 163

Multiple Choice

Which of the following is a typical example of a fixed cost?

• A)raw materials
• B)taxes
• C)sales commissions
• D)building rental expenses

---

Definitions:

Investment Bankers

Firms specializing in the sale of new securities to the public, typically by underwriting the issue.

Initial Margin

The initial deposit required when trading securities or derivatives, serving as a guarantee against potential losses.

Market Order

A type of order to buy or sell a security immediately at the best available current price.

Initial Margin

Initial margin refers to the percentage of the purchase price of securities (e.g., stocks or futures) that an investor must pay for with their own funds when using a margin account.