Which of the Following Is Incorrect About Futures Margin

question 64

Multiple Choice

Which of the following is incorrect about futures margin?

• A) In a futures margin account, the initial margin is always higher than the maintenance margin.
• B) The margin on a futures account is verified daily to ensure minimum margin requirements are met.
• C) The initial margin for a futures transaction is the same for a long and a short position.
• D) All margin initially deposited in a futures purchase must always remain until the position is closed or the contract expires.
• E) The initial margin requirements for futures contracts differ for each different contract.

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Definitions:

Elastic Demand

A situation in which the demand for a product or service is significantly responsive or sensitive to changes in its price.

Total Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Price Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in its price.