
There is no difference between the two. B. Financial investment refers to the purchase of financial assets only; economic investment refers to the purchase of any new or used capital goods. Economic investment is adjusted for inflation; financial investment is not.Click to see full answer. Then, what is the difference between economic and financial investments quizlet?Financial investments include all purchases undertaken with the expectation of financial gain; economic investments include only purchases of new capital goods. A specific amount of money is more valuable to a person the sooner it is received.Similarly, what is an example of economic investment? Financial investment refers to the purchase of assets for financial gain; economic investment refers to the purchase of newly created capital goods. (Consider This) Which of the following is an example of economic investment? Nike buys a new machine that increases shoe production. Correspondingly, what is an economic investment? In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.What are the two most important factors influencing investor preferences?The desire for high rates of return and dislike of risk and uncertainty.
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