Which of the following is an example of an ownership investment?a) Savings account b) Corporate bond c) Real estate d) Certificate of deposit (CD)
Question
Which of the following is an example of an ownership investment?
- a) Savings account
- b) Corporate bond
- c) Real estate
- d) Certificate of deposit (CD)
Solution
The answer is c) Real Estate.
Here's why:
Ownership investments, also known as capital investments, are the most volatile and profitable class of investment. They include stocks, real estate, and precious objects.
a) A savings account is not an ownership investment because it is simply a place to store money and earn a minimal amount of interest.
b) A corporate bond is a type of loan issued by a company. It is not an ownership investment because bondholders do not have any ownership rights in the company.
c) Real estate is an ownership investment because when you buy a property, you own it and can potentially profit from its sale in the future.
d) A certificate of deposit (CD) is a type of savings account with a fixed interest rate and fixed date of withdrawal. It is not an ownership investment because it does not involve owning a piece of a company or property.
Similar Questions
Which of the following investment gives protection to the policy holder?*Bank DepositsBondsCurrenciesMutual FundsStocks (Equity)Real EstateInsurance
The investment with the most risk would be aSavings account bCertificate of deposit cStocks
Ownership securities are represented by which of the following types of securities?Options :Preference SharesEquity SharesBondsNone of the above
Multiple Choice QuestionWhich of the following are not liquid assets?Multiple choice question.checking accountcashsavings accountreal estate investment
An owner to start a business is called:Question 15Answera.Loanb.Capitalc.Investmentd.Drawings
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.