Which would be considered an investment according to economists? The purchase of newly-issued shares of stock in Microsoft The construction of a new computer chip factory by Intel The purchase of shares of stock by Fidelity, a mutual fund company The sale of government bonds by the nation's central bank

Which would be considered an investment according to economists? The purchase of newly-issued shares of stock in Microsoft The construction of a new computer chip factory by Intel The purchase of shares of stock by Fidelity, a mutual fund company The sale of government bonds by the nation's central bank

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter21: Financial Markets, Saving, And Investment

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

What are the functions of stock exchanges in the economy?
What would be the effect of increased demand for the company's stock?
Define Purchase of Investment.
What are the contributing factors that contribute to the successful investment companies in the investment market.
Imagine that a local water company issued a $10,000 ten-year bond at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%. Calculate what you would actually be willing to pay for this bond.
Please explain why this is a good investment?
What is the financial market, what does it do in terms of saving investment and interest rates
Many workers hold large amounts of stock issued by the firms at which they work. Why do you suppose companies encourage this behavior? Why might a person not want to hold stock in the company where he works?
What is a bond? A certificate representing a loan from an investor to a corporation or government entity that makes fixed payments for a set time and eventually pays back the loan in full. A certificate of ownership in a corporation with the right to a percentage of the earnings. A payment for an investor to a corporation for the rights to future profits. A group of stocks sold together for a set price.
What are Fixed assets? What do they include?
Explain why a firm with $1 billion in the bank would care about the market interest rate when investing $10 million into a new building, after all they do not need to borrow money. When would the choose to undertake this investment project?
How do the sophisticated financial systems of modern economies affect the relationship between saving and investment?