If the Assets in Which Borrowed Funds Are Invested Are

question 142

True/False

If the assets in which borrowed funds are invested are able to earn a rate of return greater than the interest rate required by the lender,then financial leverage is positive.

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Definitions:

Hyperexcitability

An increased sensitivity or responsiveness to stimuli, which can manifest in nervous or muscular systems.

Stimulus Deprivation

refers to a lack of sensory input or stimulation, which can lead to various cognitive and psychological effects.

Emotionally Secure

Being emotionally secure refers to a state of feeling confident and stable in one's emotional life, allowing for healthy relationships and effective coping with stress and change.

Side-effects

Secondary, typically undesirable effects of a drug or medical treatment, or unintended consequences of actions beyond their intended effects.