Financial leverage is also known as trading on the equity.

Name: Financial leverage is also known as trading on the equity.
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Question

Quizplus · Accepted Answer

Financial leverage refers to the use of borrowed funds to increase potential returns on investments or to finance business operations. This can also be referred to as "trading on the equity," as it involves using equity as collateral to secure debt financing. Therefore, the statement is true.

Financial Leverage Is Also Known as Trading on the Equity