Leverage Is Thought to Be

question 62

Multiple Choice

Leverage is thought to be:

• A) a dangerous tool, especially for big companies who do not understand its risk.
• B) the most widely used of hedging risk in markets.
• C) the single reason for the Great depression.
• D) a relatively riskless strategy used by companies to grow quickly.

---

Definitions:

Indifference Curve

A graph representing combinations of goods or services among which a consumer is indifferent, showing preference levels and the trade-offs between different bundles.

Indifference Curve

An indifference curve represents a set of combinations of goods and services among which a consumer is indifferent, reflecting preferences and trade-offs.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.