In Finance, Leverage

question 125

Multiple Choice

In finance, leverage:

• A) multiplies the effect of gains and losses in financial markets.
• B) is using borrowed money to pay for investments.
• C) helps explain why a crash is so damaging after a bubble bursts.
• D) All of these statements are true.

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Definitions:

ERG Theory

A motivational theory developed by Clayton Alderfer that outlines three core human needs: Existence, Relatedness, and Growth.

Maslow's Needs

Maslow's Needs represent a hierarchy of human needs proposed by Abraham Maslow, which posits that people are motivated by unsatisfied needs, and certain lower needs need to be satisfied before higher needs can be addressed.

Employee Engagement

The emotional commitment the employee has to the organization and its goals, resulting in the use of discretionary effort in their work.

Motivation

The psychological processes that direct and maintain goal-directed behavior.