2
lesson pretestMultiple Choice

Pretest

Question 2 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Which best describes how an investor makes money from an equity investment?

Answer
A
by growing the asset
B
by raising capital
C
by earning interest
D
by selling the asset for a profit

Explanation

An equity investment is ownership in an asset or company. An investor can make money when the asset’s value rises and they sell it for more than they paid. Earning interest is generally associated with lending or debt investments, so “by selling the asset for a profit” is the best answer.

AI-written and checked against the verified answer.

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