A Margin Requirement Is the Amount Brokers Must Collect from Which

question 16

Multiple Choice

A margin requirement is the amount brokers must collect from which of the following?

• A)the clearinghouse
• B)all customers before a futures transaction can be executed
• C)the pit
• D)the seller of the futures agreement

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Definitions:

Product Liability

The legal liability of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods.

Exclusive Jurisdiction

The power of a court to adjudicate a case to the exclusion of all other courts.

Federal Courts

Courts established under the Constitution of the United States, which deal with issues pertaining to federal laws and constitutionality.

Bankruptcy

A legal process allowing individuals or entities that cannot repay their debts to seek relief from some or all of their financial obligations.