The Leverage Ratio of an Investment Firm Refers to

question 75

Multiple Choice

The leverage ratio of an investment firm refers to

• A) the ratio of its investment holdings relative to its vault cash.
• B) the ratio of its investment holdings relative to its capital.
• C) the percentage of deposits held by the firm relative to its deposits with Federal Reserve banks.
• D) the percentage of down payments made to the investment firm relative to the size of mortgages issued by the firm.

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Definitions:

Inner States

Refers to an individual's internal psychological conditions, such as emotions, thoughts, and feelings.

Path-goal Theory

A leadership theory suggesting that the leader's job is to assist followers in attaining their goals and to provide direction or support needed to ensure their goals are compatible with the objectives of the group or organization.

Expectancy Theory

A motivation theory that explains how individuals choose among different behaviors based on their expectations of the outcomes.

Emotional Intelligence

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, and overcome challenges.