The Use of Borrowed Funds to Supplement Existing Funds for Purposes

question 75

Multiple Choice

The use of borrowed funds to supplement existing funds for purposes of investment is called:

• A) arbitrage.
• B) leverage.
• C) convergence.
• D) intermediation.

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Definitions:

Add Fractions

The process of combining two fractions with a common denominator to form a single fraction.

Simplest Form

Refers to the state of an algebraic expression when it has been reduced to the most basic or simplified version without changing its value.

Reciprocal

The inverse of a number or expression; for a nonzero number \(x\), its reciprocal is \(1/x\).

Simplest Form

A term used to describe an expression, fraction, or other mathematical entity that has been reduced to its most basic form, eliminating any common factors or simplifying variables.