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Identify Each of the Following Actions as Representing Either Saving

question 148

Essay

Identify each of the following actions as representing either saving or investment.
a. Fred uses some of his income to buy government bonds.
b. Julie takes some of her income and buys mutual funds.
c. Alex hires a contractor to add two additional examination rooms to his dental office using borrowed funds.
d. Elaine uses some of her savings to buy stock for her new clothing boutique.
e. Henrietta hires a builder to construct a new home using borrowed funds.


Definitions:

Global Poverty

The condition of lacking necessary financial resources and basic needs on a worldwide scale, affecting billions of individuals in various countries, especially in developing regions.

Transnational Corporation

A massive enterprise that operates and manages production or delivers services in more than one country.

International Monetary Fund

An international organization created to promote global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty around the world.

World Bank

An international monetary body that supplies loans and grants to the administrations of less wealthy nations for capital project development.

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