Alliances Can Make Cooperation Between States More Likely for All

question 16

Multiple Choice

Alliances can make cooperation between states more likely for all of the following reasons EXCEPT alliances can:

• A)decrease the costs of fighting a war.
• B)increase the benefits of fighting a war.
• C)increase the cost of not fighting a war.
• D)force states to honor their commitments.
• E)improve states' bargaining positions in a conflict.

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Definitions:

Initial Margin

The minimum amount of funds required to open a position in the futures market, intended to cover potential losses.

Maintenance Margin

The minimum amount of capital that must be maintained in a margin account after a purchase or trade, to cover the risk of loss.

Margin Call

A requirement from a broker for an investor to add more cash or securities to their account to mitigate potential losses.

Short 100 Shares

The action of borrowing 100 shares of a stock to sell them with the expectation of buying them back later at a lower price.