Which of the Following Is a Consumption Asset

question 7

Multiple Choice

Which of the following is a consumption asset?

• A) The S&P 500 index
• B) The Canadian dollar
• C) Copper
• D) IBM stock

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Definitions:

Future Value

The value of an investment at a specified date in the future that is equivalent in value to a specified sum today, after being compounded at a given interest rate.

Simple Interest

Interest calculated on the principal amount of a loan or deposit, without compounding.

Account Value

The total worth of a financial account, including cash, investment holdings, and any other assets minus liabilities.

Present Values

Present values represent the sum total of all future cash flows of an investment or project discounted back to their value today.