Choose the Word or Phrase in [ ] Which Will

question 105

Multiple Choice

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The FDIC insures each [depositor | account] up to a stated maximum dollar amount at any given financial institution.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Inventory

The goods and materials that a business holds for the ultimate goal of resale or repair.

Depreciation

The gradual decrease in the economic value of the capital stock of a firm, nation, or other entity, either through physical wear and tear or obsolescence.

Net Investment

The total amount of investment in new capital assets minus the depreciation on existing assets, indicating growth in an economy's productive capacity.

Inventory Investment

The change in the stock of goods held by a business for resale or production over a period, part of the investment component in GDP calculation.