a. Saving: Eric takes out a loan and uses it to build a new cabin in Montana. b. Investment: Cho purchases new ovens for her cupcake-baking business. c. Investment: Ginny purchases stock in Pherk, a pharmaceutical company. d. Investment: Bob purchases a corporate bond issued by a car company.
Added by Renee A.
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This is classified as an **investment** because he is using the loan to create a new asset. ** Show more…
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