Question

In the language of economics, which of the following would be defined as investment? A The purchase of a U.S. savings bond B The purchase of 100 shares of Ford Motor Company stock C The deposit of $1,000 into a savings account D The accumulation of inventories by a firm The correct answer is D, but I think is B
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Answer #1

Inventory represents important asset of a business because turnover of inventory is one of the important source of revenue generation and earning for shareholders. So accumulation of inventory represents an investment. In economics it include in GDP as an investment component

Purchase of Ford Motor company stock is also an investment but this is the subject of finance.

So option D is correct.

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