Question

Match the following statements with the correct terms. 1. Chinese tech billionaire Wiliam Ding Lei buys Elon Musk's mansion in Bel Air, California for $29 million < investment spending 2. Country singer Shania Twain spends $14 million to build a new house in New Zealand investment in physical assets < investment in financial assets 3. Mr. Econ was pleasantly surprised when he purchased 100 shares in Tesla Inc. and the shares increased in value by 20% overnight.

Answer 1

The following are the matched pairs:

1-Investment in physical assets. (This is because Ding Lei is investing in something that is already built (or produced), i.e, Musk's mansion).

2-Investment spending. (This is because Twain is spending $14 million to build a new house).

3-Investment in financial assests. (Shares are considered to be part of financial assets).