ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Capital appreciation refers to
A
the increased value of an asset.
B
The decreased value of an asset.
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Capital appreciation, also known as capital gains, refers to the increase of an investment’s value. A capital appreciation fund is a fund that attempts to increase asset value primarily through investments in high-growth and value stocks.

Detailed explanation-2: -A capital gain is the increase in a capital asset’s value and is realized when the asset is sold. Capital gains apply to any type of asset, including investments and those purchased for personal use. The gain may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes.

Detailed explanation-3: -A capital gain is an increase in the value of an asset or investment resulting from the price appreciation of the asset or investment. In other words, the gain occurs when the current or sale price of an asset or investment exceeds its purchase price.

Detailed explanation-4: -Capital appreciation refers to an increase in the value of financial assets such as stocks. Currency appreciation refers to the increase in the value of one currency relative to another in the foreign exchange markets.

Detailed explanation-5: -Appreciation is an increase in the value of an asset over time. The term is widely used in several disciplines, including economics, finance, and accounting. In accounting, appreciation refers to the positive adjustment made to the initially booked value of an asset.

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