ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC GROWTH

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Using money to create a new capital good
A
venture capital
B
real investment
C
capital accumulation
D
captial gain
Explanation: 

Detailed explanation-1: -New Capital provides a wide range of actively managed, high-conviction, global, regional and specialist investments for private clients, financial intermediaries and institutional clients worldwide.

Detailed explanation-2: -Capital investment is meant to benefit a company in the long run, but it nonetheless can have short-term downsides. Capital investments tends to reduce earnings growth in the short term, and that never pleases stockholders of a public company.

Detailed explanation-3: -Preservation of capital is a conservative investment strategy where the primary goal is to preserve capital and prevent loss in a portfolio. Capital preservation strategies necessitate investing in the safest short-term instruments, such as Treasury bills and certificates of deposit.

Detailed explanation-4: -Under this definition, “capital” refers to long-term physical assets. Vehicles, buildings, computer equipment, furniture, machinery, and land are all examples of capital investments. For a trucking company, this could mean buying more trucks to expand its fleet or fix ones that have broken down.

There is 1 question to complete.