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Introduction to Investment

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Questions and Answers

What is the reason for saving according to the text?

To have immediate possession of savings for future consumption

To trade off present consumption for a higher level of future consumption (correct)

To retrieve savings from the mattress when needed

To bury money in the backyard for future use

What is the main purpose of investment as per the text?

To consume more than current income

To have immediate possession of savings

To make savings increase over time (correct)

To defer consumption

What do people tend to do when their current income exceeds current consumption desires?

Save the excess (correct)

Invest the excess

Borrow more money

Spend the excess immediately

What happens when people retrieve their savings from the mattress or backyard according to the text?

They have the same amount they saved Signup and view all the answers

What do those who give up immediate possession of savings expect according to the text?

To receive in the future a greater amount than they gave up Signup and view all the answers

What is the reason for saving according to the text?

To trade present consumption for a higher level of future consumption Signup and view all the answers

What do people tend to do when their current income exceeds current consumption desires?

Save the excess Signup and view all the answers

What happens when people retrieve their savings from the mattress or backyard according to the text?

They have the same amount they saved Signup and view all the answers

What do those who give up immediate possession of savings expect according to the text?

To receive in the future a greater amount than they gave up Signup and view all the answers

What is investment according to the text?

Making savings increase over time Signup and view all the answers

Introduction to Investment

Choose a study mode

Podcast

Questions and Answers

What is the reason for saving according to the text?

What is the main purpose of investment as per the text?

What do people tend to do when their current income exceeds current consumption desires?

What happens when people retrieve their savings from the mattress or backyard according to the text?

What do those who give up immediate possession of savings expect according to the text?

What is the reason for saving according to the text?

What do people tend to do when their current income exceeds current consumption desires?

What happens when people retrieve their savings from the mattress or backyard according to the text?

What do those who give up immediate possession of savings expect according to the text?

What is investment according to the text?

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