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Essay on the Meaning of Investment: Investment is the employment of funds with the aim of achieving additional income or growth in value. The essential quality of an investment is that, it involves ‘waiting’ for a reward.
What should be considered before making an investment?
Before funds are invested, erosion of the resources will have to be carefully considered in order to make the right choice of investments. The investor will try and search an outlet which will give him a high rate of return in the form of interest to cover any decrease due to inflation.
What is the definition of investment in the economist?
The term investment implies the formation of new and productive capital in the form of new construction, new producers’ durable equipment such as plant and equipment. Inventories and human capital are included in the economist’s definition of investment.
Which is an essential quality of an investment?
The essential quality of an investment is that, it involves ‘waiting’ for a reward. It involves the commitment of resources which have been saved or put away from current consumption in the hope that some benefits will accrue in future.
Last Update: Oct 2021
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