Earning More Income on Borrowed Money Than the Related Interest

question 106

Multiple Choice

Earning more income on borrowed money than the related interest expense is called ________.

• A)premium
• B)leverage
• C)annuity
• D)amortization

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Definitions:

Random Error

An error in measurement caused by unpredictable fluctuations in the variables being measured.

Least Squares Regression Line

A straight line that best fits the data points in a scatter plot by minimizing the sum of the squares of the vertical distances (residues) of the points from the line.

Relationship Between X And Y

A term often used in statistics and research to describe how two variables change relative to each other.

Vertical Spread

A trading strategy using options that involves buying and selling options of the same underlying security, same expiration date, but different strike prices.