A(n) ____ from a Broker Requires the Investor to Put

question 11

Multiple Choice

A(n) ____ from a broker requires the investor to put up additional collateral.

• A)maintenance margin
• B)initial margin
• C)margin call
• D)none of the above

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Definitions:

Instrument Value

The actual worth or significance of a financial document, like a stock or bond, in transactions.

Maker

The party in a financial transaction who creates or signs a promissory note, thereby agreeing to pay the note's value to a specified party.

Drawer

The person who writes or signs a bill of exchange, such as a check, thus creating a financial obligation.

Sight Draft

A financial instrument that is payable on presentation or sight to the drawer.