What Requires You to Add Cash or Securities When the Value

question 171

Multiple Choice

What requires you to add cash or securities when the value drops below a specified amount?

• A)Maintenance Margin
• B)Initial Margin
• C)Margin Call
• D)Margin Account

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Definitions:

Perfect Complements

Goods that are always consumed together in fixed proportions because their consumption provides utility only when combined, such as left and right shoes.

Income Effect

The change in an individual's consumption choices that results from a change in their real income or purchasing power.

Substitution Effect

The substitution effect occurs when consumers replace cheaper items for more expensive goods due to changes in relative prices, holding utility constant.

Slutsky Compensated Demand Curve

Represents consumer demand by adjusting for changes in purchasing power, illustrating how quantity demanded varies with price, holding utility constant.