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Q.

Money spent on assets such as land is called ____


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Detailed Solution

Money spent on assets or purchases made to create income or capital growth is an investment. When a person invests in an asset, they do not intend to utilise it as a source of immediate consumption but rather as a tool for future wealth creation. An investment always includes the expenditure of some capital—time, effort, money, or an asset—today with the expectation of a future return higher than the initial investment. An investor would invest in a financial asset now with the hope that it will provide income later on.
 
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