Which One of the Following Is the Definition of Maintenance

question 98

Multiple Choice

Which one of the following is the definition of maintenance margin?

• A)initial amount required when a futures contract is either bought or sold
• B)maximum amount of margin permitted for a futures account
• C)minimum margin required in a futures account at all times
• D)the additional amount requested in a margin call
• E)the minimum amount needed to reverse a futures position

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Definitions:

Internal Control System

A set of procedures and mechanisms implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Receipts

The collection of money, typically in the form of cash or checks, received by a business during its operating activities.

Cash Payments

Transactions involving the outflow of cash to settle obligations or purchase goods and services.

Control Environment

The overall attitude of management and employees about the importance of controls.