Which Would Be Considered an Investment According to Economists

question 112

Multiple Choice

Which would be considered an investment according to economists?

• A)the purchase of newly-issued shares of stock in Microsoft
• B)the construction of a new computer chip factory by Intel
• C)the purchase of shares of stock by Fidelity, a mutual fund company
• D)the sale of government bonds by the nation's central bank

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Definitions:

Double-Entry Accounting

An accounting method requiring every financial transaction to be recorded in two accounts, one debit and one credit, to keep the accounting equation balanced.

Debits

Accounting entries that increase assets or expenses or decrease liabilities, equity, or revenue, recorded on the left side of an account.

Credits

Entries on the right-hand side of an accounting ledger, indicating increases in liability, equity accounts, and revenue, or a decrease in assets.

Debit Side

The left side of a ledger account that is used to record increases in assets, expenses, and decreases in liabilities, equity, and income.