The Leftmost Block of Wood Is Like a Mountain Range

question 7

Multiple Choice

The leftmost block of wood is like a mountain range on Earth in that it

• A)is composed of less dense materials and is a thick block (crust)compared to other blocks (land areas on Earth).
• B)is composed of more dense materials and is a thick block (crust)compared to other blocks (land areas on Earth).
• C)is over a part of the Earth where the mantle is unusually thin.
• D)is underlain by ocean.

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Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to continue holding a position, set by a brokerage to prevent excessive borrowing based on volatile market values.

Margin Call

A margin call occurs when the value of an investor's margin account falls below the broker's required minimum level, prompting the investor to either deposit more funds or sell assets to cover the shortfall.

Margin Deposit

A deposit required by a broker from a client when they borrow from the broker to buy securities, serving as collateral for the loan.

Long Positions

Investing strategy where an investor buys a security with the expectation that it will increase in value.