The Margin on a Futures Contract Refers to the Amount

question 91

True/False

The margin on a futures contract refers to the amount of equity the investor initially paid to purchase the futures contract.

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Definitions:

Monetary Policy

Economic policy laid down by the central bank involving management of money supply and interest rates to influence economic growth and stability.

Federal Reserve System

Central bank of the United States, whose main job is to control our rate of monetary growth.

Money Supply

The total amount of monetary assets available in an economy at any specific time.

Depository Institutions Deregulation

The process of removing government restrictions on banks and other financial institutions, aimed at increasing competition and efficiency in the financial sector.