The Absolute Minimum Initial Margin Requirement Is Set by The

question 44

Multiple Choice

The absolute minimum initial margin requirement is set by the:

• A)individual investor.
• B)brokerage firm.
• C)Federal Reserve.
• D)Security Investors Protection Corporation.
• E)Securities and Exchange Commission.

---

Definitions:

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and opportunity cost of tied-up capital.

Shortage Costs

Costs incurred from not having enough inventory on hand, including lost sales and emergency shipping expenses.

Order Costs

Expenses related to placing and receiving orders for inventory, including costs associated with ordering, shipping, and handling.

Accounts Receivable Period

The common interval before a business secures payments from its customers for products or services rendered on credit.