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:

Independent Contractors

Individuals who offer their services on a freelance basis and are not considered employees of the companies with which they work, often providing their tools and deciding their work hours.

Highly Dependent

Describes a state or condition where there is a strong reliance or need for something or someone for support or survival.

National Labor Relations Act

A foundational statute in United States labor law which protects the rights of employees and employers, encourages collective bargaining, and curtails certain private sector labor and management practices, which can harm the general welfare of workers, businesses, and the U.S. economy.

Agricultural Laborers

Workers involved in the cultivation, harvesting, and processing of crops and livestock, often facing unique labor and employment conditions.