Which of the following is NOT one of the 5 methods of leverage?

The question requires identifying which of the listed options is not considered one of the traditional methods of leverage.

The correct response points to mortgage agreements as the outlier, primarily because it's not typically categorized alongside the five main methods of leverage commonly associated with financial practices. Those methods generally refer to financial instruments and strategies used specifically to enhance the potential return on investment by using borrowed capital.

Futures contracts, for instance, involve leveraging by allowing traders to control a larger amount of an underlying asset with a relatively small initial investment. This mechanism provides exposure to price movements without requiring the full capital upfront.

Securities lending also demonstrates leverage as it allows investors to borrow securities to sell short, which can amplify the potential gains or losses based on the investment outcome.

Repurchase agreements (repos) are another form of leverage where cash is borrowed against securities. This allows investors to earn a return on their cash holdings while maintaining ownership of the securities.

In contrast, mortgage agreements are primarily a means of acquiring property and are typically categorized under specialized loans rather than general investment leverage methods. Therefore, the distinction lies in the role that each plays in the financial strategy, aligning the mortgage more with real estate financing than with the traditional leverage instruments.