In Economics,the Term 'Investment' Refers To

question 18

Multiple Choice

In economics,the term 'investment' refers to:

• A)purchasing shares and fixed term securities.
• B)spending on physical products that are intended to be used as inputs in production processes.
• C)purchasing a piece of existing real estate.
• D)purchasing goods or services.

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Definitions:

Spot Market

A public market for trading financial instruments or commodities that are delivered immediately.

Trade Settled

The completion of a securities transaction when the seller delivers the security to the buyer and receives payment in return.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, to assess relative currency value.

Forward Rate

The forward rate is the agreed-upon interest rate for a financial transaction that will occur at a future date, often used in the context of foreign exchange and bonds.