A(n) _______ call is a notification to a futures position holder to increase the balance when the dollar amount in an account drops below the minimum required level.
A) refunding
B) broker's
C) funding
D) account
E) margin

Question

Quizplus · Accepted Answer

The term "margin call" refers to a notification from a broker to a futures position holder that additional funds must be added to the account to meet the minimum margin requirement. The minimum required level is the amount of money needed to maintain the position. If the account balance drops below this level, the margin call is issued to the account holder. Therefore, the correct answer is E, "margin."

A(n) _______ Call Is a Notification to a Futures Position