Which of These Activities Will Most Likely Result in an External

question 150

Multiple Choice

Which of these activities will most likely result in an external benefit?

• A)A university student buys a deck of cards to play solitaire in her dorm room.
• B)An elderly woman plants a flower garden on the vacant lot next to her house.
• C)An executive purchases a book to read on a business trip.
• D)A ten-year-old buys new Nikes with his allowance money he has saved.

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Definitions:

Specified Formula

A precisely defined mathematical equation or method used to solve a problem or determine an outcome.

Financial Asset

An intangible asset whose value is derived from a contractual claim, such as stocks, bonds, or bank deposits.

Debt Securities

Financial instruments that denote money owed by the issuer to the holder, typically involving regular interest payments and a return of principal at maturity.

Mutual Fund Shares

Representations of ownership in a mutual fund, which pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.