A Margin Call Refers To

question 60

Multiple Choice

A margin call refers to:

• A)the payment of profit by the clearinghouse to the trader.
• B)the demand of funds by the clearinghouse from each trader to cover losses.
• C)the difference between the futures market price and the contract price.
• D)the close of a futures contract.

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Definitions:

Executive Order

A directive issued by the President or a government official that has the force of law, typically without the need for legislative approval.

Nonconstruction Employer

A business or organization that does not primarily engage in construction activities or projects.

Federal Contractors

Companies or individuals that enter into contracts with the federal government to provide goods or services, subject to specific regulations and requirements.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence.