Which of the following best describes an investment?

Investments are typically characterized by the expectation of generating a return or profit over time, often by allocating resources, such as money, to various assets. Buying stocks or bonds fits this definition perfectly, as these financial instruments are designed to appreciate in value or yield dividends and interest, respectively.

When someone buys stocks, they are purchasing a share of ownership in a company, which could lead to capital gains if the company's value increases. Bonds, on the other hand, represent loans made to entities (like corporations or governments) that pay interest at certain intervals. Both stocks and bonds can help grow wealth over time through these mechanisms, making them classic investment choices.

In comparison, purchasing a car generally leads to depreciation rather than appreciation, while opening a savings account might generate interest, but it is often at a rate that doesn’t significantly grow wealth compared to more aggressive investments. Holding cash in hand doesn't actively work to create returns and can actually lose value over time due to inflation.