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Author Question: The U.S. government budget was A) continuously in surplus from 1959 to the late 1990s. B) in ... (Read 107 times)

Pineapplelove6

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on: Jun 30, 2018
The U.S. government budget was
 
  A) continuously in surplus from 1959 to the late 1990s.
  B) in surplus for most of the period from 1959-1970, but was in deficit for most of the period from 1970 to the late 1990s.
  C) in deficit for most of the period from 1959-1970, but was in surplus for most of the period from 1970 to the late 1990s.
  D) continuously in deficit from 1959 to the late 1990s.

Question 2

How do exchanges seek to reduce default risk in the futures market?
 
  What will be an ideal response?


frre432

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

Exchanges require both the buyer and seller to place an initial deposit in a margin account. At the end of each trading day, exchanges carry out a daily settlement known as marking to market in which, depending on the closing price of the contract, funds are transferred from the buyer's account to the seller's account or vice versa.


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