Author Question: The larger the fraction of an investment financed by borrowing A) the greater the potential ... (Read 65 times)

haleyc112 · **on:** Jun 29, 2018

The larger the fraction of an investment financed by borrowing

A) the greater the potential return and the smaller the potential loss on that investment.
B) the smaller the potential return and potential loss on that investment.
C) the greater the potential return and potential loss on that investment.
D) the smaller the potential return and the greater the potential loss on that investment.

Question 2

The policy which holds that the federal government should not allow large financial firms to fail, for fear of damaging the financial system, is known as the ________ policy.

A) too-big-to-fail B) Dodd-Frank
C) mandatory bailout D) rational expectations