Which one of the following is an example of an economic investment?
A) putting money in a bank CD
B) buying a corporate bond or stock
C) purchasing shares of a mutual fund
D) building a new bank oﬃce

Question

Quizplus · Accepted Answer

Building a new bank office is an example of an economic investment because it involves the creation of a new physical asset that can generate income or increase productivity for the bank. The other options listed (putting money in a bank CD, buying a corporate bond or stock, purchasing shares of a mutual fund) are investments, but they are not examples of economic investments because they do not involve the creation of new physical assets or increased productivity.

Which One of the Following Is an Example of an Economic