In the Futures Markets,a Maintenance Margin Call Refers To

question 20

Multiple Choice

In the futures markets,a maintenance margin call refers to:

• A) funds paid to the clearing house by the brokers as insurance against losses.
• B) funds paid to the clearing house by each trader to cover losses.
• C) realised profits paid by the clearing house to traders.
• D) the difference between the futures contracts price and the underlying asset.

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Definitions:

Time Lags

Delays between the initiation of an action and its effect or outcome, often encountered in economic policies or financial transactions.

Errors

Mistakes or inaccuracies in financial information or records, which may require correction through adjustments.

Voucher Register

A record that keeps track of all issued vouchers, which are documents authorizing payments, and their current status.

NSF Check

An NSF check is a check that cannot be processed due to insufficient funds in the account it's drawn on.