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

Question 22

Multiple Choice

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


A) booming; multiplies the gains; crashing; magnifies the losses
B) booming; magnifies the losses; crashing; multiplies the gains
C) crashing; mitigates the losses; booming; mitigates the gains
D) crashing; magnifies the losses; booming; mitigates the gains

Correct Answer:

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