In Finance, Leverage

question 76

Multiple Choice

In finance, leverage:

• A) multiplies the effects of gains and losses in financial markets.
• B) can require investors to dig deep into their own resources.
• C) helps explain why a crash is so damaging after a bubble bursts.
• D) All of these are true.

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Definitions:

Lead Paint

A type of paint that contains lead, a toxic metal, which can cause serious health problems, especially in children if ingested or inhaled.

Fetus

A developing human from roughly eight weeks after conception to the moment of birth.

Premature Birth

The birth of a baby before the standard period of pregnancy is completed, typically before 37 weeks of gestation, which may lead to several health challenges for the infant.

Germinal

Referring to the earliest stage of development after fertilization, when the organism is a rapidly dividing mass of cells.