Margin Requirements on Commodities Contracts

question 42

Multiple Choice

Margin requirements on commodities contracts:

• A)are much higher than those on common stock transactions.
• B)vary over time, and even among exchanges, for a given commodity.
• C)typically are 2-10% of the value of the contract.
• D)None of the above are true

---

Definitions:

Common Measures Bias

A bias that occurs when survey respondents use common scales to make their answers seem more socially acceptable or favorable.

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, whereby conclusions about other people and situations may be drawn in an illogical fashion.

Performance of Divisions

Evaluation of each segment or department within a company based on their financial results, productivity, and efficiency.

Cognitive Bias

An organized tendency to deviate from normal or logical thinking in making judgments, leading to conclusions about people and situations that are drawn illogically.