Which of the Following Statements About the Margin Requirements on Commodities

question 37

Multiple Choice

Which of the following statements about the margin requirements on commodities contracts is NOT true?

• A)Use of margin is less common than trading with actual cash dollars
• B)They are generally much lower than those on stock transactions
• C)It is merely a good faith payment against losses
• D)All of the above are true

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Definitions:

Central Vacuole

A large vacuole found in the center of most plant cells, involved in storage and the regulation of cell volume and pressure.

Plasmolysis

The process in which cells lose water in a hypertonic solution, causing the cell membrane to detach from the cell wall.

Crenation

The shrinking of cells in a hypertonic solution due to loss of water through osmosis.

Osmotic Pressure

The pressure that needs to be applied to a solution to prevent the inward flow of water across a semipermeable membrane.