Assertion :Leverage is an important tool of financial planning Reason: It is related to profits

Both Assertion and Reason are correct and Reason is the correct explanation for Assertion

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Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion

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Assertion is correct but Reason is incorrect

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Assertion is incorrect but Reason is correct

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Solution

The correct option is A Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
Leverage is both a tool for accelerating your wealth growth, and it's a tool for breaking through the constraints that limit your success. Why you need a wealth plan, not an investment plan.
Best of all, it doesn't have to be risky, because only financial leverage both increases risk and return.

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