The Amount of Margin Required to Buy a Futures Contract

question 20

True/False

The amount of margin required to buy a futures contract is equal to 50 percent of the value of the contract.​

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Definitions:

NSF Check

A check that cannot be processed because the account it is drawn on does not have enough funds.

Bank Statement Adjustment

Amendments made to the balance as shown by the bank statement to reflect accurate entries for transactions not yet recorded.

Deposit In Transit

Funds that have been deposited by a company but not yet recorded by the bank.

Bank Reconciliation

Aligning an organization's cash account records in its accounting books with the relevant details found in a bank statement.