A real investment would be the purchase of a
A) common stock.
B) treasury bill.
C) piece of production equipment.
D) call option.

Question

Quizplus · Accepted Answer

The purchase of production equipment is a real investment as it represents a tangible asset that can generate future cash flows through its use in the production process. Common stock and call options represent ownership in a company, but do not necessarily result in the acquisition of a physical asset. Treasury bills are a form of short-term debt and do not represent an actual investment in productive assets.

A Real Investment Would Be the Purchase of a