Which of the following statements is true?
A) Financial investment refers to the creation and expansion of business enterprises.
B) Economic investment refers to the expansion of the economy's productive capability.
C) Economic investment refers to the purchase of assets such as stocks, bonds, and real estate.
D) Both economic investment and ﬁnancial investment refer to the purchase of assets such as stocks, bonds, and real estate.

Question

Quizplus · Accepted Answer

Economic investment refers to increasing the economy's productive capability through the creation of new capital goods or the improvement of existing ones. This may include investments in machinery, equipment, and technology, which enable businesses to produce more goods and services with the same resources. Financial investment, on the other hand, refers to the purchase of financial assets such as stocks, bonds, and real estate, which do not necessarily contribute to the expansion of the economy's productive capability. Therefore, option B accurately describes the concept of economic investment.

Which of the Following Statements Is True