If the Price of a Futures Contract Increases,then

question 69

Multiple Choice

If the price of a futures contract increases,then

• A) the exchange will collect the amount of the increase from the seller of the contract and transfer it to the account of the buyer of the contract.
• B) the exchange will collect the amount of the increase from the buyer of the contract and transfer it to the account of the seller of the contract.
• C) the exchange will collect the amount of the increase from both the buyer and the seller and place it in an escrow account until the delivery date.
• D) the additional funds will not be required from either the buyer or the seller until the delivery date.

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Definitions:

Delay Gratification

The strength to forego an immediate payoff for the sake of a more substantial reward at a later time.

Achievement Motivation

The drive to excel, achieve in relation to a set of standards, or pursue success in tasks.

Social Isolation

A state where an individual lacks a sense of social belonging, social engagement, and fulfilling relationships, often leading to feelings of loneliness and depression.

Fundamental Adaptive Motive

An innate drive that guides behavior and decision-making for adaptation and survival.