A Capital Gain Is the Increase in Value of an Asset

question 202

True/False

A capital gain is the increase in value of an asset above its initial cost.

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Definitions:

Earn Interest

The process by which money deposited in a savings account or investment grows over time due to the payment of interest.

Months

Units of time measurement that constitute roughly one-twelfth of a year, used in planning and tracking various financial activities.

Interest

The cost of borrowing money or the payment received for lending money, usually expressed as a percentage of the principal.

Investment

Investment involves allocating resources, usually money, with the expectation of earning an income or profit over time.