Investment is defined as...

Investment is defined as...

• A. Money put aside for profit; can be secured or unsecured with expected return depending on risk.
• B. Money saved over a period of time; funds not spent.
• C. Interest charged on a loan
• D. A type of bank account.

Answer: (A)

Investment means committing money to assets or ventures with the aim of growing wealth over time. It involves risk because the return is not guaranteed and depends on how risky the chosen investment is. Some investments can be secured by collateral, others are unsecured, and returns may come as capital gains, dividends, or interest, though you could also lose money. Saving stores money for later with little or no expected return; a loan charge is interest the borrower pays, not money you earn; a bank account holds funds and may offer small interest but isn’t typically considered an investment. The option described captures the idea of putting money to work to earn a profit and acknowledges that returns depend on risk.

Investment means committing money to assets or ventures with the aim of growing wealth over time. It involves risk because the return is not guaranteed and depends on how risky the chosen investment is. Some investments can be secured by collateral, others are unsecured, and returns may come as capital gains, dividends, or interest, though you could also lose money. Saving stores money for later with little or no expected return; a loan charge is interest the borrower pays, not money you earn; a bank account holds funds and may offer small interest but isn’t typically considered an investment. The option described captures the idea of putting money to work to earn a profit and acknowledges that returns depend on risk.