Investment Is Defined As

question 34

Multiple Choice

Investment is defined as:

• A) income not spent on investment goods.
• B) income not spent on consumption goods.
• C) income not taxed by the government.
• D) the purchase of new capital goods.

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Definitions:

Reserves

Funds or assets set aside to meet future liabilities, unexpected costs, or potential financial obligations.

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, set by central banks to ensure bank liquidity and stability.

Deposits

Funds placed in a bank account that can be withdrawn by the account holder, typically used for safekeeping or to earn interest.

Money Supply

The total amount of money in circulation or in existence within a country, including cash and deposits.