Which of the Following Is Considered a Return "On" Investment

question 20

Multiple Choice

Which of the following is considered a return "on" investment?

• A) Dividends.
• B) Repayment of a loan.
• C) Both of the above.
• D) None of the above.

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Definitions:

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Financial Intermediaries

Institutions that facilitate the channeling of funds between savers and borrowers, by ensuring the flow of capital.

Pension Funds

Investment pools, typically of large size, established to manage and invest the retirement funds of employees, offering them income upon retirement.

Credit Unions

Member-owned financial cooperatives that provide the same services as banks but are typically nonprofit, aiming to serve their members rather than maximize profit.