Futures Contracts Require That the Purchaser Deposit an Initial Sum

question 59

Multiple Choice

Futures contracts require that the purchaser deposit an initial sum as collateral. This deposit is called a:

• A) collateralized deposit.
• B) marked market sum.
• C) margin.
• D) settlement.

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Definitions:

Elemental Iodine

A nonmetallic element in the halogen group, appearing as a dark gray/purple solid at room temperature and used in medicine and nutrition.

Goiter

An abnormal enlargement of the thyroid gland, often resulting in a visible swelling in the neck, which can be caused by iodine deficiency.

Kwashiorkor

A form of malnutrition caused by inadequate protein intake, characterized by edema, stunted growth, and other health issues.

Overnourished

A condition in which an individual has consumed nutrients, especially calories, in excess of dietary requirements, leading to overweight and obesity.