17. The daily sett count i daily settement process that credits gains or deducts losses account is called a. the variation margin b. marking-to-market c. the initial margin d. the maintenance margin e. the gain/loss ratio racts 18. Which of the following is correct about futures cont ll a. b. c. buyers of futures contracts make profits when prices fa buyers of futures contracts make a profit when interest rates sellers of futures contracts make a profit when prices fall rise d. sellers of futures contracts make a profit when prices rise e. a and d 19. Moral hazard A) B) Is reduced by providing deposit insurance. Causes bankers to overstate the provision for loan loss account. C) D) E) Requires the FDIC to charge all banks a constant depos Refers to the increased risk of lending to sovereign states. it insurance premium. Arises when the insured takes on more risk because he or she is insured. 20. Purchased funds include all but which one of the following? Commercial Paper Wholesale CDs C) D) Fed funds purchased Repurchase agreements Demand deposits E) 21. Which two bond option positions increase in value when interest rates fall? A) Long call, Written put B) Long put; Written call C) Long put; Long call D) Written put; Written call