Which of the Following Is Considered Investment

question 274

Multiple Choice

Which of the following is considered investment?

• A) the acquisition of capital goods
• B) the purchase of government bonds
• C) the purchase of IBM stock
• D) the sale of foreign currency

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Definitions:

Central Focus

The primary point of interest or activity in a given context or discussion.

Bads

Items or factors that negatively impact societal welfare or personal well-being, often considered the opposite of goods.

Goods

Tangible products or commodities that satisfy human wants and provide utility.

Mental Accounting

The tendency people have to create separate “mental boxes” (or “accounts”) in which they deal with particular financial transactions in isolation rather than dealing with them as part of an overall decision-making process that would consider how to best allocate their limited budgets across all possible options by using the utility-maximizing rule.