The Process of Marking to Market

question 111

Multiple Choice

The process of marking to market:

• A) is done by the clearing corporation to reduce risk in futures contracts.
• B) involves the margin accounts of only the buyers of future contracts.
• C) involves the margin accounts of only the sellers of future contracts.
• D) usually requires margin accounts to be adjusted weekly by the clearing corporation.

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Definitions:

Potential Issues

Possible problems or challenges that might arise in the context of a specific situation or plan.

Stemming

Content analysis term for grouping different words by a common stem; for example, fish is the stem for fisherman, fishy, fishtail, fishing, and fished.

Variations

Differences or deviations in the form, condition, or behavior of individuals or groups from a known reference point or standard.

Advantages

The benefits or favorable aspects associated with a particular action, decision, or situation.