Question
A margin call is received when an account balance falls below a(n) _______ margin; the funds then must be added to satisfy a(n) _____ margin.
A margin call is received when an account balance falls below a(n) _______ margin; the funds then must be added to satisfy a(n) _____ margin.
A. initial; maintenance
B. maintenance; initial
C. initial; initial
D. maintenance; maintenance
E. second; first
An investment bank that maintains some Treasury bond holdings sells Treasury bond futures contracts. If interest rates decrease, the market value of the bond holdings will _______ and the position in futures contracts will result in a _______.
A. increase; gain
B. increase; loss
C. decrease; loss
D. decrease; gain
E. not change; gain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started