There Are Two Types of Investment: ________ Investment-The Spending by Business

question 59

Multiple Choice

There are two types of investment: ________ investment-the spending by business firms on equipment and structures,and planned spending on residential houses-and ________ investment-spending by business firms on additional holdings of raw materials,parts,and finished goods.

• A)planned;gross
• B)planned;inventory
• C)fixed;gross
• D)fixed;inventory

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Definitions:

Compounded Annually

Interest calculation method where the interest is added to the principal at the end of each year, impacting the amount in the following year.

Maturity Value

The amount that will be received at the end of a fixed-income investment period such as a bond or certificate of deposit.

Investment

An investment is an asset or item acquired with the goal of generating income or appreciation over time.

Investment

The action or process of investing money for profit or material result, often involving risk.