Which One of the Following Is an Example of a Financial

question 113

Multiple Choice

Which one of the following is an example of a financial investment but not an economic investment?

• A)renovating a shopping mall
• B)constructing an addition to a petroleum refinery
• C)building a new store
• D)buying gold to sell later at a higher price

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Definitions:

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the current or upcoming fiscal year.

Debt Securities

Financial instruments representing money that is borrowed and must be repaid, with terms that define the amount borrowed, interest rate, and maturity date.

Year 3

Third year in a series, sequence, or timeline, often used in financial and analytical contexts to denote the third year of operations, performance, or analysis.

Comparative Balance Sheets

Financial statements that show a company's financial position at different points in time, facilitating analysis of trends and changes.