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What do "leverage" and "deleveraging" mean in economics? Seek an explanation
1, leverage (personal capital): leverage, adding borrowed money to existing funds for investment; Leverage ratio, the ratio of assets to bank capital. Rational use of leverage principle is helpful for enterprises and individuals to accelerate their development and improve their efficiency, but there is also the risk that they will not be able to repay when due. Leverage is debt, and leverage ratio is debt ratio.

2. deleveraging "leverage" refers to debt management, "leverage" refers to debt ratio, "deleveraging" refers to avoiding debt management or reducing debt ratio as much as possible, and "deleveraging" refers to using equity financing instead of debt financing as the dominant or even the only way of corporate financing.

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