When financial markets are __________,leverage ______________;when they _______,leverage ____________.

Question

Quizplus · Accepted Answer

When financial markets are booming, leverage multiplies the gains as investors are able to borrow money at lower interest rates and invest it in assets that have higher returns. However, when the market crashes, leverage magnifies the losses as investors now have to bear the losses on the borrowed funds as well.

When Financial Markets Are __________,Leverage ______________;When They _______,Leverage ____________

When Financial Markets Are ,Leverage ;When They _,Leverage __________