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:

Control Accounts

An account in the general ledger that summarizes and aggregates the details of a subsidiary ledger.

Subsidiary Ledger

A detailed ledger that provides a breakdown of individual accounts receivable, accounts payable, or other account categories that together constitute a general ledger account.

General Ledger

A comprehensive ledger containing every financial transaction throughout a company's existence.

Special Journal

A ledger used in accounting to record and categorize similar types of transactions for efficiency.