The deposits that are required in future contract and considered as guarantee, that the conditions of contracts would be fulfilled is classified as ___________?
Correct answer: A. initial margin
- A. initial margin
- B. futures margin
- C. conditional margin
- D. non-conditional margin
Explanation
Initial margin is the deposit posted when a futures position is opened to guarantee contractual performance. It differs from maintenance margin, which is the minimum balance that must later be maintained.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as ____________?
The feature of stock which allows stock holders to buy the shares below than market price is called __________?
The capital gains and dividends are considered as components of __________?
The periodic payments of dividends are subtracted from return to stockholders to calculate ____________?
The Black Scholes model consider the factors which affects an option price, the factors are __________?
The call option considering interest rates and have multiple exercise dates is classified as ____________?