Futures Margin Is Defined as the Deposit of Funds into a Futures

question 20

Multiple Choice

Futures margin is defined as the deposit of funds into a futures trading account for which one of the following purposes?

• A)purchase additional futures contracts
• B)take a hedge position in the future
• C)cover potential losses from outstanding positions
• D)cover the trading costs and commissions
• E)cover the future costs of reversing the position

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Definitions:

Rent-Seeking Behavior

Actions by individuals or companies to increase their own wealth without creating new wealth or value, often through manipulating the environment in which economic activities occur.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or reimburses them for expenses incurred from illness or injury.

Net Social Cost

The comprehensive expense to the community for the production of one more unit of an item, encompassing both personal expenses and external factors.

Rent-Seeking Behavior

Actions by individuals or firms to increase their own wealth without generating new wealth or value for society, often through manipulating the social or political environment.