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Q.

The meaning of investment is


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a

To buy assets to gain a profit out of saved capital.

b

To spend on a party with friends.

c

To lend money

d

To pay your room rents 

answer is A.

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Detailed Solution

The meaning of investment is to buy assets to gain a profit out of saved capital.
An investment is using capital (money) in a project or activity expected to yield a positive return over time. The type of income generated depends on the type of project or asset. Real estate can generate rentals and capital gains; many stocks pay quarterly dividends; bonds often pay periodic interest. In investing, risk and reward are two sides of the same coin; low risk usually means low expected return, and higher return usually means higher risk. Investors can take a do-it-yourself approach or use the services of a professional wealth manager.
 
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