Investment is
A) the purchase of goods and services.
B) the purchase of capital equipment and structures.
C) when we place our saving in the bank.
D) the purchase of stocks and bonds.

Question

Quizplus · Accepted Answer

Investment refers to the purchase of capital equipment and structures with the goal of increasing future productivity and income. While placing savings in a bank can be a form of investment (such as through a savings account or certificate of deposit), this definition is too narrow to encompass the full scope of investment. The purchase of stocks and bonds is a form of investment, but it is more specifically categorized as financial investment, whereas the purchase of capital equipment and structures is categorized as physical investment.

Investment Is