The process of marking to market:
A. involves the margin accounts of only the sellers of future contracts.
B. is done by the clearing corporation to reduce risk in futures contracts.
C. involves the margin accounts of only the buyers of future contracts.
D. usually requires margin accounts to be adjusted weekly by the clearing corporation.
Answer: B
You might also like to view...
Which of the following statements regarding the requirement that a firm be granted a license to operate in a particular market is false?
A) Advocates of licensing maintain that the practice is necessary to maintain quality of service. B) One of the economic effects of a license requirement is to constrain the available supply of the affected good or service. C) The requirement that they be licensed ensures that the affected firms will be able to earn a positive economic profit. D) Relaxing certain licensing requirements should increase the supply of the affected good or service.
Although he is very poor, Al plays the million-dollar lottery everyday because he is certain that one day he will win. Al makes this calculation based upon
A) the frequency of past outcomes. B) subjective probability. C) knowledge of all possible outcomes. D) tossing a coin.
The benefits principle states that those who
A. pay the taxes should reap the benefits. B. reap the benefits from government should pay the taxes. C. are best able to pay should pay for what they receive. D. pay taxes get the benefits they deserve.
When interest rates are low, people often ______.
a. put a bit aside every payday to invest in U.S. Treasury bills b. invest in long-term savings instruments c. hang on to their money to make sure they have enough for everyday expenses d. put more money into their CDs