Which One of the Following Terms Applies to the Amount

question 78

Multiple Choice

Which one of the following terms applies to the amount of money required when a futures position is first bought or sold?

• A)original deposit
• B)initial margin
• C)spot margin
• D)equity deposit
• E)mark to market

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Definitions:

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Supply

The total amount of a product or service that is available to consumers.

Rents

Payments made for the use of property or land; in economics, it also refers to earnings in excess of the minimum amount needed to keep a factor of production in its current use.

Dollar Loss

A decrease in the value of an investment, expressed in dollar terms, compared to its purchase price.