The Typical Sequence of Cash Flows in a Futures Contract

question 82

Multiple Choice

The typical sequence of cash flows in a futures contract is:

• A)Purchase price plus a margin account up front, differences are settled at expiration
• B)Margin account up front, differences are posted daily and settled in cash if margin drops too low
• C)Margin account up front, all differences settled at expiration
• D)All funds are paid at expiration of the contract

Recognize the role of procedural knowledge in influencing patterns of fear and avoidance in social situations and strategies for change.

Understand the Implicit Association Test (IAT) and what it measures in the context of self-knowledge.

Explain the self-discrepancy theory, including the root causes of depression and anxiety.

Comprehend the concept of self-schemas based on past experiences and their role in how we relate to others.

---

Definitions:

Vesting Rights

Guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer.

Pension Plan

A pension plan is a retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit. The funds are invested on the employee's behalf, and the earnings on the investments generate income to the worker upon retirement.

Retirement Age

The age at which a person is eligible to retire and receive full pension benefits, typically set by government policies or employment agreements.

Cafeteria-Style Plans

Employee benefit plans that allow workers to choose from a variety of pre-tax benefits, tailoring their benefits package to their specific needs.