Question

Which of the following is an example of a real investment?

Answer 1

Answer:

Among the options given on the question the correct answer is option D.

Building a new factory for a business.

Explanation:  Investment has a vast definition in the economical sphere. Commonly it can be said that investment is allocating money in any sphere expecting profit in the return. There are various kinds of investment. Like as buying shares,securities, bonds, real estate, industry etc.

But the real investment is something which does not contain high risk but provide a stable profit and material property. Building a new factory for a business is an example of the real investment.

The other options given on the question are not real investment. Because the stock investment includes risk. Buying a saving bond is also not an real investment.

So option D is the correct answer.