A Weighted Price Index That Uses Current-Period Quantities as Weights

question 17

Multiple Choice

A weighted price index that uses current-period quantities as weights is known as ________.

• A)Fisher's ideal index
• B)the Laspeyres index
• C)the Paasche index
• D)the value index

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Definitions:

Maintenance-Margin

The minimum amount of equity that must be maintained in a margin account to continue holding positions, preventing a margin call.

Margin Call

A demand by a broker that an investor deposits further cash or securities to cover possible losses.

Margin Deposit

A margin deposit is an initial sum deposited to cover potential losses when borrowing capital for investing, typically in a margin account for trading securities.

Open Interest

The number of futures contracts outstanding.