The terms "economic investment" and "ﬁnancial investment" can be used synonymously.

Question

Quizplus · Accepted Answer

Economic investment refers to the allocation of resources (such as capital, labor, and technology) in order to create or expand productive capacity, whereas financial investment refers specifically to the acquisition of financial assets (such as stocks, bonds, and real estate) in order to generate returns. While there can be overlap between economic and financial investments, they are not synonymous terms.

The Terms "Economic Investment" and "ﬁNancial Investment" Can Be Used