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Which of the Below Statements Is FALSE

Question 41

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.

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