Principals need to monitor agents

Which statement about leveraging is true?

a. It is safer for banks to have a high level of leverage than a low level of leverage. b. A higher amount of leveraging means a higher potential for profit. c. Financial institutions avoid being highly leveraged due to the potential for loss. d. Banks can only use their own money as leverage.

Profit is the:

A. total revenue minus total cost. B. sum of total revenue and total cost. C. total cost minus total revenue. D. None of these is true.