Futures Contracts Require That the Purchaser Deposit an Initial Sum

question 59

Multiple Choice

Futures contracts require that the purchaser deposit an initial sum as collateral. This deposit is called a:

• A) collateralized deposit.
• B) marked market sum.
• C) margin.
• D) settlement.

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Definitions:

Emitted Emissions

The pollutants released into the environment as a byproduct of economic activity, such as manufacturing or transportation.

Mercury

A heavy, silvery d-block element that is the only metallic element that is liquid at standard conditions for temperature and pressure.

Tradable Pollution Permits

A market-based approach to controlling pollution by offering a limited number of permits that allow the holder to emit a certain amount of pollutants, which can be bought and sold.

Municipal Sewage

Waste water and solids collected from a community, typically transported through a sewer system for treatment or disposal.