Define investment. (Topic: Basic Concepts of Economy)
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⭐In finance, investment means the purchase of a financial product or other item of value with an expectation of favorable future returns.
. Let us understand a few concepts of Macroeconomics such as Monetary Policy, Input and Output etc.
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Investment is the "purchase of goods" and usage of resources in order to increase income or production output in the future.
Explanation:
- Investment is classified into two ways which are Economical Investment and Financial Investment.
- The investment can be done in lands, stock, mutual funds, real estate because investment provides financial security and income.
- Investment is the buying of resources that are not spent currently but are used later to create wealth is defined as Economical Investment.
- Investment is the financial asset bought to produce "income in the future" or will later be sold at a maximum price for a profit is defined as financial investment.
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