Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

3 which of the following involves the long-term commitment of money to …

Question

3 which of the following involves the long-term commitment of money to sources that can be expected to increase the outcome?

investing
holding
stashing
saving

Explanation:

Analyze the question definition

The question asks for the term that involves the "long-term commitment of money to sources that can be expected to increase the outcome" (i.e., generate a return or grow in value over time).

Evaluate the options

  • Investing: This involves putting money into financial schemes, shares, property, or commercial ventures with the expectation of achieving a profit or long-term growth. This matches the definition perfectly.
  • Holding: This generally refers to keeping an asset without selling it, but does not inherently define the active commitment of money to growth sources.
  • Stashing: This is an informal term for hiding or storing money away, which does not grow the money.
  • Saving: This involves putting money aside in safe, highly liquid accounts (like a savings account) primarily for short-term goals or emergencies, rather than committing it to long-term growth assets.

Select the correct option

"Investing" is the correct term for committing money long-term to assets expected to increase in value.

Answer:

  • (A) Investing (Correct answer)
  • (B) Holding
  • (C) Stashing
  • (D) Saving