Which One of the Following Is the Definition of Maintenance

question 98

Multiple Choice

Which one of the following is the definition of maintenance margin?

• A)initial amount required when a futures contract is either bought or sold
• B)maximum amount of margin permitted for a futures account
• C)minimum margin required in a futures account at all times
• D)the additional amount requested in a margin call
• E)the minimum amount needed to reverse a futures position

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Definitions:

Constant Returns To Scale

A situation in which increasing all inputs by a certain factor leads to an increase in output by the same factor, indicating proportionate scaling in production.

Production

This refers to the process of creating goods and services through the combination of labor, materials, and technology.

Cost

The monetary value required to produce or acquire goods or services.

Competitive Firm

An individual company operating in a competitive market, where it has little to no control over the market price of its goods or services, and must accept the market price as given.