Which of the Following Is Not Considered Investment in the National

question 141

Multiple Choice

Which of the following is not considered investment in the national income accounts?

• A)​The purchase of a drill press by XYZ company.
• B)​Construction of a new housing project.
• C)​The accumulation of inventories on a grocer's shelves.
• D)​The purchase of 1000 shares of IBM stock.

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Definitions:

Book Value

The net value of a company's assets, minus its liabilities, often used to assess if a company's stock is under- or overvalued.

Market Value

The price at which assets or services are currently being offered in the marketplace.

Financial Managers

Professionals responsible for managing the financial health of an organization, including planning, organizing, controlling, and monitoring financial resources.

Interest Income

Earnings from interest-bearing financial assets, such as loans, bonds, and savings accounts.