Which One of the Following Is a True Statement

question 79

Multiple Choice

Which one of the following is a true statement?

• A) A margin deposit can only be met by cash
• B) All futures contracts require the same margin deposit
• C) The maintenance margin is the amount of money you post with your broker when you buy or sell a futures contract
• D) The maintenance margin is the value of the margin account below which the holder of a futures contract receives a margin call

---

Definitions:

Lost Profits

Potential earnings or revenues that a business or individual did not realize due to an interruption, breach of contract, or other adverse events.

Breach of Contract

The violation of any of the agreed-upon terms and conditions of a binding contract without a legitimate legal excuse.

Consequential Damages

In a contract, foreseeable damages that result from special facts and circumstances arising outside the contract itself. The damages must be within the contemplation of the parties at the time the breach occurs. Also called special damages.

Nominal Damages

Monetary damages awarded to a plaintiff in a very small amount, typically $1 to $5, to signify that the plaintiff has been wronged by the defendant even though the plaintiff suffered no compensable harm.