Which Statement Is True

question 263

Multiple Choice

Which statement is true?

• A)Productive efficiency has never been achieved.
• B)The U.S.economy achieved productive efficiency from mid-1997 through mid-2001.
• C)The U.S.economy achieved productive efficiency from 1980 to 1997.
• D)Our economy generally attains productive efficiency.

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Definitions:

Marking to Market

The process of updating the value of an asset to its current market levels for accounting and regulatory purposes.

Future Positions

Contracts to buy or sell a specific quantity of a commodity, currency, or financial instrument at a predetermined price at a future date.

Daily Settlement

The process of settling trades at the end of each trading day, including the calculation of gains and losses.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, in order to keep the account open.