Because Deviance Undermines Predictability, a System of _____ Was Developed

question 10

Multiple Choice

Because deviance undermines predictability, a system of _____ was developed to enforce the norms.

• A) street crime
• B) sociology
• C) social control
• D) assumption reinforcement

Understand the role and characteristics of margin requirements in futures trading.

Recognize the importance and implications of the convergence property in futures pricing.

Explain the difference between forward and futures contracts and their respective trading venues.

Identify strategies for managing risk using futures contracts for both hedgers and speculators.

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Definitions:

Unconscious Factor

Elements of thought and motivation that reside outside the conscious awareness but influence behavior and decisions.

Net Capital Loss

The financial loss that occurs when the total capital losses from investments exceed the total capital gains in a fiscal year.

Carry Back

A tax provision that allows a business to apply current year net operating losses to past tax years to receive a tax refund for previously paid taxes.

Carry Forward

A tax provision allowing taxpayers to apply a current year's unused tax credits or losses to future tax years.