Which One of the Following Describes the Typical Initial Margin

question 18

Multiple Choice

Which one of the following describes the typical initial margin requirements for a futures contract?

• A) 2 to 5 percent of contract value on short positions only
• B) 2 to 5 percent of contract value on both long and short positions
• C) 4 to 8 percent of contract value on long positions only
• D) 4 to 8 percent of contract value on short positions only
• E) 5 to 15 percent of contract value on both long and short positions

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Definitions:

Population Growth

The increase in the number of individuals in a population, measured by the natural increase and net migration.

Per Capita Incomes

The average income earned per person in a certain area or country, calculated by dividing the area's total income by its population.

Birth Rates

The average number of births per 1,000 people in a given population during a specific period of time.

Demographic Transition

The transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.