Which of the Below Statements Is FALSE

question 41

Multiple Choice

Which of the below statements is FALSE?

• A) Maintenance margin is the minimum level (specified by the exchange) to which an investor's equity position may fall as a result of an unfavorable price movement before the investor is required to deposit additional margin.
• B) Unlike initial margin, the variation margin must be in cash rather than interest-bearing instruments.
• C) When securities are acquired on margin, the difference between the price of the security and the initial margin is loaned from the broker.
• D) A party taking a position in a futures contract need not put up the entire amount of the investment.

Recognize work factors that can contribute to stress, including role conflicts, poor interpersonal relations, and inappropriate career pacing.

Understand the key concepts of Maslow's hierarchy of needs theory, including the differentiation between lower and higher-order needs.

Recognize the characteristics of high need achievers and their preferences in a work setting.

Identify the managerial implications of content theories of motivation.

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Definitions:

Emissions Tax

A tax imposed on the emission of pollutants, aimed at reducing environmental harm.

Optimal Tax

A tax system designed to achieve the best balance between efficiency and equity.

Marginal Social Benefit

The supplementary gain for society derived from the consumption of one extra unit of a good or service.

Marginal Social Cost

The cost to society of producing an additional unit of a good or service, including both private costs and any externalities.