Which One of the Following Terms Applies to the Amount

question 78

Multiple Choice

Which one of the following terms applies to the amount of money required when a futures position is first bought or sold?

• A)original deposit
• B)initial margin
• C)spot margin
• D)equity deposit
• E)mark to market

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Definitions:

Intersection

The point at which two or more lines, streets, or elements meet or cross.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms in a competitive market have no incentive to enter or exit because they are earning normal profit.

Monopolistically Competitive Industry

An industry characterized by many firms offering products that are similar but not perfect substitutes, allowing for some degree of market power.

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical, allowing for competition among firms.