Which One of the Following Transactions Is Included in a Current

question 217

Multiple Choice

Which one of the following transactions is included in a current year's GDP as investment spending?

• A)ABC company purchased 10,000 shares of IBM stock.
• B)Ronnie bought a new BMW.
• C)Anton purchased his friend's condo.
• D)Maggie bought a play-gym set for her day-care business.

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Definitions:

Transactions

The act of buying, selling, or exchanging goods, services, or financial assets in the business world.

Inventory

The total of all goods and materials held by a business for the purpose of resale, production, or use in operations.

Purchases

The acquisition of goods or services for the purpose of resale or use in the production of goods for sale.

Purchase Discounts

A reduction in the price paid for goods or services, often granted by the seller as an incentive for early payment.