Leverage is best defined as:
A)the practice of buying an asset with borrowed money.
B)using friends inside the banking industry to secure loans.
C)the ability of people without income to secure mortgages.
D)low interest rates at the beginning of the term of a loan that later rise.

Question

Quizplus · Accepted Answer

Leverage refers to the practice of using borrowed capital or debt to increase the potential return of an investment. This includes buying assets with money that has been borrowed, which can amplify both gains and losses.

Leverage Is Best Defined As