Categorize each of the following as a type of savings or investment in the economic sense. a. You buy 100 shares of Apple Computer stock:. b. You place part of your income in a mutual fund:. c. A delivery service buys 1,000 new trucks:. d. You put $1,000 in a certificate of deposit, by giving money to the bank in exchange for a set amount of return:.

Question

Kenzie Gibson

Business

22 April, 12:32

Categorize each of the following as a type of savings or investment in the economic sense. a. You buy 100 shares of Apple Computer stock:. b. You place part of your income in a mutual fund:. c. A delivery service buys 1,000 new trucks:. d. You put $1,000 in a certificate of deposit, by giving money to the bank in exchange for a set amount of return:.

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Teresa Nielsen · Answer 1

Answer: All the options given are investments.

Explanation:

Savings is the money left with an economic agent after consumption has been deducted from ones income. Investment is the return that is expected when an item or asset is purchased by an individual or firm.

For option A, when someone buys shares, the person is expecting a return from the shares bought. It is an investment. Foe option B, a mutual fund is an investment that is made up of bond and other securities. When one places part of his or her income in a mutual fund, the person expects a return. For option C, buying delivery trucks for a business is an investment as the trucks are expected to generate more funds for the business. Also option D is an investment as putting funds in a certificate of deposit brings financial return.