(Consider This) What is the difference between ﬁnancial investment and economic investment?
A) There is no difference between the two.
B) Financial investment refers to the purchase of ﬁnancial assets only; economic investment refers to the purchase of any new or used capital goods.
C) Economic investment is adjusted for inﬂation; ﬁnancial investment is not.
D) Financial investment refers to the purchase of assets for ﬁnancial gain; economic investment refers to the purchase of newly created capital goods.

Question

Quizplus · Accepted Answer

Financial investment is about buying assets for financial gain, such as stocks or bonds, while economic investment specifically involves purchasing newly created capital goods, like machinery or buildings, to be used in production.

(Consider This) What Is the Difference Between ﬁNancial Investment and Economic