23,. A financial institution engages inwhen it finances its investments with bor

Question

23,. A financial institution engages inwhen it finances its investments with borrowed funds. A. Arbitrage B. Bartering C. Thrifting D. Leverage 24. Banks have sometimes been subject to most notably in the To avert this danger depositors are now protected by deposit insurance. A. Excess reserves B. Saving reserves C. Bank Runs D. Bank Leverage allows banks that fall short of the 25. The reserve requirement to borrow funds from banks with excess reserves. A. International Funds Market B. Local Funds Market C. Institutional Funds Market D. Federal Funds Market

Explanation / Answer

First question is answered below

1. Correct option: Leverage

Reason: Leveraging in finance refers to the practice of using borrowed money.

It involves raising money through borrowing and then using this money to finance investments.

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