In the Language of Economics,which of the Following Would Be

question 25

Multiple Choice

In the language of economics,which of the following would be defined as investment?

• A) The purchase of a U.S.savings bond
• B) The purchase of 100 shares of Ford Motor Company stock
• C) The deposit of $1,000 into a savings account
• D) The purchase of $500 worth of gold
• E) The accumulation of inventories by a firm

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Definitions:

Equivalent Payment

A term related to finance that typically involves finding a payment amount that equates to an equal value under different conditions.

Scheduled

Planned or organized for a certain time or date.

Focal Date

In finance, it refers to a specific point in time used as a reference or base date for calculating the value of financial instruments or for determining the timing of cash flows.

Economic Value

An estimation of the benefit provided by a good or service to an economic agent.