"Leverage" in finance refers to the:
A) Increase in profits or losses from an investment
B) Use of one's own money in an investment
C) Use of borrowing money in order to magnify returns from an investment
D) Shifting of financial risk on to an insurer

Question

Quizplus · Accepted Answer

Leverage refers to the use of borrowed money to increase potential returns (or losses) from investments. It involves using debt or other forms of financing to amplify the gains or losses from an investment. This is often done in the hopes of earning a higher return than would be possible using only one's own money.

"Leverage" in Finance Refers to The