In Financial Markets,leverage Refers to

question 86

Multiple Choice

In financial markets,leverage refers to

• A) the use of borrowed money in an investment.
• B) the power to influence the market.
• C) the use of political connections in attaining financial outcomes.
• D) the role that speculators have in impacting market outcomes.

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Definitions:

Marginal Cost

The price of generating an extra unit of a good or service.

Gallons

A unit of volume for liquid measure equal to four quarts, used in both the US customary and British imperial systems.

Cereal

Grain-based food typically eaten as breakfast, made from processed grains and often fortified with vitamins and minerals.

Secondary Effect

The indirect consequences or impacts of an action or policy that may not be immediately apparent.