A company borrows money to supplement its current funds and uses it to buy more financial assets. This is what referred to as:

Name: A company borrows money to supplement its current funds and uses it to buy more financial assets. This is what referred to as:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Leverage refers to the strategy of using borrowed money to increase the potential return of an investment. In this context, the company is using borrowed funds to purchase more financial assets, aiming to amplify its gains.

A Company Borrows Money to Supplement Its Current Funds and Uses