A Margin Call Is When

question 37

Multiple Choice

A margin call is when:

• A) it looks like you are in danger of running through your money, and your broker forces you to sell your stock and use the money to pay back your loan.
• B) the market reaches a tipping point, and the financial bubble bursts.
• C) prices on future values of a stock are forecasted to be lower than current prices.
• D) prices on future values of a stock are forecasted to be higher than current prices.

---

Definitions:

Cost of Living

A measure of the average cost necessary to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time.

Consumer Expenditure Survey

A statistical survey that collects information on the spending habits, income, and demographic characteristics of consumers.

Consumer Confidence Index

A measure of the overall degree of confidence individuals have in the economic situation and their personal financial situation.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.