What is an Investment? - Definition & Overview


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question 1 of 3

Which of the following is the BEST explanation of investment?

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1. Which of the following terms basically describes activity that is the opposite of investment?

2. Which of the following is NOT a type of government investment?

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About This Quiz & Worksheet

Use this quiz/worksheet combo to help you test your understanding of the characteristics of investments. You'll be expected to choose the best explanation of an investment as well as identify an item within a given list that isn't a government investment.

Quiz & Worksheet Goals

In these assessments, you'll be tested on:

  • The explanation of an investment
  • Activity that is the opposite of an investment
  • Government investment types
  • Investment's effects on the economy
  • Reasons governments make investments

Skills Practiced

This quiz and worksheet allow students to test the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on characteristics of investments
  • Interpreting information - verify that you can read information regarding types of government investments and interpret it correctly
  • Information recall - access the knowledge you've gained regarding ways investing affects the economy
  • Knowledge application - use your knowledge to answer a question about the reason governments make investments

Additional Learning

To learn more about investing your money, review the accompanying lesson, What is an Investment? - Definition & Overview. This lesson covers the following objectives:

  • Describe the formal meaning of the term 'investment'
  • Contrast investment with term 'consumption'
  • Identify one pro and one con of investing
  • Know three classes of investors and relate at least two examples of investments from each class
  • Understand how each class of investor affects the economy