Which of the following refers to a relatively small (in terms of the contract value)deposit made with a clearinghouse?
A)Maintenance margin
B)Margin call
C)Initial margin
D)Daily resettlement

Question

Quizplus · Accepted Answer

Initial margin refers to a relatively small deposit made with a clearinghouse. Maintenance margin refers to the amount that must be maintained in the account to avoid a margin call, while a margin call is a demand for additional funds to be deposited into the account to bring it up to the required margin level. Daily resettlement refers to the process by which gains and losses are settled on a daily basis in a futures contract.

Which of the Following Refers to a Relatively Small (In