Investment Fundamentals Quiz

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Questions and Answers

What is the meaning of investment according to economics?

  • Buying financial products with anticipation of positive returns
  • Investing in new constructions, plant and machinery, and inventories
  • Utilization of resources to increase future income or production output (correct)
  • Undertaking investments to increase the current economy’s capital stock

What is the nature of financial investments?

  • Expectation of increasing the current economy’s capital stock
  • Conversion of investments into financial products or valued items
  • Formation of new and productive capital in the form of new constructions
  • Anticipation of positive returns in the future (correct)

What is the scope of investment according to finance?

  • Utilization of resources to increase future income or production output
  • Formation of new and productive capital in the form of new constructions
  • Buying financial products with anticipation of positive returns (correct)
  • Investment in the current economy’s capital stock

What are economic investments undertaken for?

<p>Increasing the current economy’s capital stock (D)</p> Signup and view all the answers

What is the main characteristic of investment objectives?

<p>Anticipation of positive returns in the future (A)</p> Signup and view all the answers

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