The Effect of Marking a Futures Contract to Market Is

question 96

Multiple Choice

The effect of marking a futures contract to market is similar to:

• A) requiring daily payments from the contract buyer.
• B) requiring daily payments from the contract seller.
• C) closing the current position and opening a new position daily.
• D)imposing a daily fee on both buyers and sellers.

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Definitions:

Individual Transferable Quota (ITQ)

A system that allocates a certain amount of catch or production rights to individuals who can then trade these rights among themselves.

Property Rights

The legal rights to possess, use, and dispose of assets, including the right to exclude others from using them.

Forestry Companies

Businesses involved in the cultivation, maintenance, conservation, and study of forests, woodlands, and related resources.

World Population

The total number of humans currently living on Earth.