Futures Contracts Minimize Default Risk by Requiring Traders to Post

question 47

Multiple Choice

Futures contracts minimize default risk by requiring traders to post collateral called ________ when buying or selling commodities using futures contracts.

• A)down payment
• B)marked to market
• C)margin
• D)commission
• E)deposit

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Definitions:

SAM

An acronym for Serviceable Available Market; the segment of the total available market that can actually be reached or served.

TAM

Total Addressable Market, an estimate of the revenue opportunity available or market demand for a product or service.

Early Majority

A segment of adopters in the diffusion of innovations theory that represents those who adopt a new technology or idea after a tentative initial period.

Early Adopters

The first individuals to use or adopt a new product, technology, or innovation, often influencing others in their social circles.