In finance, leverage is using:
A. borrowed money to pay for investments.
B. the equity one owns to pay for investments planned in the future.
C. predicted earnings to pay for current investments.
D. forecasted future earnings to pay for current loans.
A. borrowed money to pay for investments.
You might also like to view...
When the U.S. dollar depreciates against the yen, the yen ________ and the exchange rate ________
A) appreciates; rises B) depreciates; rises C) appreciates; falls D) depreciates; falls
Suppose that you decide that you no longer want to hold currency, and deposit all of your currency holdings to your checking account. What is the immediate or initial impact of this transaction on M1 and M2?
What will be an ideal response?
Pietro is a manager at a carwash. He has hired 10 workers to wash and detail cars for him and is considering what type of payment scheme he should set up for his workers
He can pay each of his workers $9 per hour to wash and detail cars, or he can pay his workers $12 for each car a worker washes and details. (It takes 75 minutes, on average, for an employee to wash and detail a car.) If Pietro wants to maximize the number of cars his workers wash and detail in one day, which payment scheme should he use? Explain.
If a firm offers a senior citizen discount
A) the firm expects the average senior citizen to have a lower price elasticity of demand. B) the firm expects the average senior citizen to have a higher price elasticity of demand. C) senior citizens may be offended. D) it may be prosecuted for discrimination.