Which one of the following is a true statement?
A) A margin deposit can be met only by cash.
B) All futures contracts require the same margin deposit.
C) The maintenance margin is the amount of money you post with your broker when you buy or sell a futures contract.
D) The maintenance margin is the value of the margin account below which the holder of a futures contract receives a margin call.

Question

Quizplus · Accepted Answer

The maintenance margin is the value of the margin account below which the holder of a futures contract receives a margin call. Choice A is incorrect because margin deposits can also be met by securities. Choice B is incorrect because the margin deposit varies depending on the futures contract. Choice C is incorrect because the amount of money you post with your broker when you buy or sell a futures contract is the initial margin, not the maintenance margin.

Which One of the Following Is a True Statement