People in an open economy who wish to invest can either:
A) invest at home or abroad.
B) buy stocks or bonds.
C) buy financial assets or durable goods.
D) invest in private companies or public companies.

Question

Quizplus · Accepted Answer

In an open economy, people have the option to invest at home or abroad. This allows them to diversify their investment portfolio and potentially achieve greater returns. Buying stocks or bonds (B) is a way to invest, but it is limited to that specific type of financial asset. Buying durable goods (C) is not an investment as it does not generate a return. Investing in private or public companies (D) is also a choice, but it falls under the category of investing at home or abroad (A).

People in an Open Economy Who Wish to Invest Can