(Last Word) The term "leverage" refers to
A) using borrowed money in an attempt to increase proﬁts.
B) the Fed's ability to control money creation through the reserve ratio.
C) investing in stocks from multiple companies in an effort to spread risk.
D) Fed sales and purchases of bonds to stabilize the money supply.

Question

Quizplus · Accepted Answer

Leverage refers to using borrowed money, often with the intention of increasing potential returns but also increasing the level of risk. It is commonly used in investing and trading.

(Last Word) the Term "Leverage" Refers to