Question
The correct answer is D, but I think is B In the language of economics, which...
The correct answer is D, but I think is BIn the language of economics, which of the following would be defined as investment? A The purchase of a U.S. savings bond B The purchase of 100 shares of Ford Motor Company stock C The deposit of $1,000 into a savings account D The accumulation of inventories by a firm
Answers
Inventory represents important asset of a business because turnover of inventory is one of the important source of revenue generation and earning for shareholders. So accumulation of inventory represents an investment. In economics it include in GDP as an investment component
Purchase of Ford Motor company stock is also an investment but this is the subject of finance.
So option D is correct.
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