Margin Accounts Have the Effect of

question 16

Multiple Choice

Margin accounts have the effect of

• A) Reducing the risk of one party regretting the deal and backing out
• B) Ensuring funds are available to pay traders when they make a profit
• C) Reducing systemic risk due to collapse of futures markets
• D) All of the above

---

Definitions:

Unbounded Energy

A term that might describe an inexhaustible or seemingly limitless vitality or enthusiasm.

Narcotics Use

The consumption of drugs that dull the senses and often have analgesic properties, potentially leading to addiction.

Overdose

The ingestion or application of a drug or substance in quantities greater than are recommended or generally practiced, leading to a severe adverse reaction.

Flashbacks

Sudden, intense recollections of past experiences or events, often traumatic, that feel as though they are happening in the present.