Investors Acquiring of Gold Futures Contracts

question 40

Multiple Choice

Investors acquiring of gold futures contracts

• A) do not have to meet margin requirements
• B) may anticipated an increase in inflation
• C) are considered to have unleveraged positions
• D) have less speculative positions

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Definitions:

Credit Entries

Accounting entries that increase liabilities or equity or decrease assets, reflecting gains to a company's balance sheet.

Expense Account

An income statement account that represents the cost of goods sold or services provided to generate revenue.

Credit Balance

A credit balance occurs when the total credits in an account exceed the debits, often seen in liability, revenue, and equity accounts.

Capital Account

An account on a company's balance sheet that represents the owners' stake or equity in the company.