What type of investment occurs when claims to wealth in the form of financial assets are purchased or when debt obligations are repaid?
A)financial investment
B)real investment
C)contractual investment
D)voluntary investment

Question

Quizplus · Accepted Answer

When individuals or organizations purchase financial assets such as stocks, bonds, or mutual funds, they are making financial investments. Similarly, when they repay debt obligations (such as loans or bonds), they are also making a financial investment. Therefore, Option A is the correct answer. Option B (real investment) refers to investments made in tangible assets such as property, equipment, or land. Option C (contractual investment) refers to investment agreements between two parties, such as a franchise agreement or a licensing agreement. Option D (voluntary investment) is not a recognized category of investment.

What Type of Investment Occurs When Claims to Wealth in the Form