5 Questions
According to economics, investment is solely the buying of financial products for anticipated positive returns in the future.
False
Financial investments refer to the expectation of increasing the current economy's capital stock.
False
Economic investments imply the expectation of forming new and productive capital.
True
Investment in the form of new constructions, plant and machinery, and inventories is considered a financial investment.
False
Risk and return are not important considerations in the practice of investment.
False
Study Notes
Definition of Investment
- Investment refers to the buying of financial products with the expectation of earning positive returns in the future.
Types of Investment
- Financial investments aim to increase the current economy's capital stock.
- Economic investments involve forming new and productive capital.
Forms of Investment
- Examples of investment include new constructions, plant and machinery, and inventories.
Important Considerations
- Risk and return are important considerations in the practice of investment.
Test your knowledge of investment fundamentals with this quiz. Explore the meaning, nature, and scope of investment, characteristics, objectives, risk and return, kinds of investors, and the time value of money. Ideal for students and professionals in finance and business management.
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