ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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amount remaining after current wants and needs have been satisfied
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savings opportunities which yield a high interest rate
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portion of current income not spent on consumption
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purchase of assets with the goal of increasing future income
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Detailed explanation-1: -An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth.
Detailed explanation-2: -In an economic outlook, an investment is the purchase of goods that are not consumed today but are used in the future to generate wealth. In finance, an investment is a financial asset bought with the idea that the asset will provide income further or will later be sold at a higher cost price for a profit.
Detailed explanation-3: -Investing is the purchase of assets with the goal of increasing future income. There is a large variety of investment opportunities that vary dramatically in the rates of return investors receive. Rate of return refers to the annual return on an investment including appreciation and dividends or interest.
Detailed explanation-4: -Investment goals provide structure and purpose to the money we allocate to investment products, such as stocks, bonds and funds. Investing and investment goal setting go hand in hand with sound personal finance practices, such as building an emergency fund and managing spending.
Detailed explanation-5: -What Is Investment? By investment, economists mean the production of goods that will be used to produce other goods. This definition differs from the popular usage, wherein decisions to purchase stocks (see stock market) or bonds are thought of as investment. Investment is usually the result of forgoing consumption.