Multiple Choice
Which of the below statements is FALSE?
A) Maintenance margin is the minimum level (specified by the exchange) to which an investor's equity position may fall as a result of an unfavorable price movement before the investor is required to deposit additional margin.
B) Unlike initial margin, the variation margin must be in cash rather than interest-bearing instruments.
C) When securities are acquired on margin, the difference between the price of the security and the initial margin is loaned from the broker.
D) A party taking a position in a futures contract need not put up the entire amount of the investment.
Correct Answer:

Verified
Correct Answer:
Verified
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