(Last Word) the Greater the Leverage in the Financial System

question 37

Multiple Choice

(Last Word) The greater the leverage in the financial system, all else equal,

• A)the smaller the monetary multiplier.
• B)the smaller the profit and loss margins of financial firms.
• C)the greater the stability of the financial system.
• D)the greater the instability of the financial system.

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Definitions:

Western Leaders

Political, economic, or cultural figures who are influential in the Western world, often associated with countries in North America and Western Europe.

Sustainable Company

A business that operates in a way that is environmentally responsible, economically viable, and socially equitable over the long term.

Quarterly Earnings

A financial report indicating a company's revenue, expenses, and net income over a three-month period.

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or transaction with another party.