Which of the Following Is the Best Example of What

question 52

Multiple Choice

Which of the following is the best example of what is meant by the term maturation?

• A) a first-grader who is learning to do arithmetic problems
• B) an infant who babbles "ga-ga-ga-ga" when she is content
• C) a college student who is working hard to learn to speak Spanish
• D) a mother who teaches her 2-year-old to control his temper by ignoring him when he has a tantrum

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Definitions:

Margin

The difference between the selling price of a product or service and its cost, or the borrowed funds used to invest in securities.

Margin Call

A demand by a broker that an investor deposits further cash or securities to cover possible losses.

Initial Margin

The initial margin is the upfront investment required when buying on margin or entering a futures contract, acting as a security deposit for the trade.

Maintenance Margin

The minimum amount of equity an investor must maintain in a margin account after the purchase has been made, to keep the position open.