The greater the ____, the greater the amount of assets per dollar's worth of equity.
A)leverage measure
B)ratio of equity to debt
C)capital ratio
D)proportion of loans to securities in the asset portfolio

Question

Quizplus · Accepted Answer

Leverage measure indicates the amount of debt used to finance assets. A higher leverage means more assets are financed through debt relative to equity, thus increasing the assets per dollar's worth of equity.

The Greater the ____, the Greater the Amount of Assets