Question

A _________ is generally considered an appreciating asset because it may _________ in value over time.

Answer 1

A house is generally considered an appreciating asset because it may increase in value over time. Appreciation is an increase in the value of an asset over time. The increase of the value of the house may occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. One example would be: the neighborhood became very famous, so the value of the houses there will increase, because the demand will increase.

Answer 2

The correct answer is (C).

A house is generally considered an appreciating asset because it may increase in value over time.

Further Explanation:

House:

A house is an appreciating asset. The value of the home increases with time. Due to the rise in the prices of the property, or land, the value of the houses increases as well. If the house is in a metropolitan city, then the value of the home will be the most.

Justification for the correct and incorrect answer:

A-

Car;increase: This option is incorrect.

The value of the car decreases over time.

B-

Car;decrease: This option is incorrect.

The car is not an appreciating asset.

C-

House;increase: This option is correct.

The house is an appreciating asset, and its value increases over time.

D-

House;decrease: This option is incorrect.

The house is an appreciating asset, but its value increases over time.

Therefore, the house is an appreciating asset, and its value increases over time.

Learn More:

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Answer Details:

Grade: High school

Chapter: Housing property

Subject: Business studies

Keywords:

A house is generally considered an appreciating asset because it may increase in value over time, car, increase, car decrease, house; increase, house;decrease.