Margin Is Required Only of Those Investors Who Take Long

question 21

True/False

Margin is required only of those investors who take long positions in futures contracts.

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Definitions:

Social Loafing

The tendency of individuals to put in less effort when working in a group compared to when working alone.

Coordination Loss

The inefficiency in group performance compared to individual performance, due to the difficulty of aligning the efforts and actions of all members.

Task Taxonomy

Group tasks can be classified according to whether a division of labour is possible; whether there is a predetermined standard to be met; and how an individual’s inputs can contribute.

Divisible Task

A task that can be broken down into smaller, separate tasks to be completed by different individuals.