Question

What is a device of investment?

• A. Post Office
• B. Bank
• C. Market
• D. Both (A) and (B)

Hint:

When thinking of investment, consider the places you can go to put your money. Banks and Post Offices are two of the most common and accessible institutions for the general public.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
A 'device of investment' refers to an institution, instrument, or channel through which individuals can invest their money with the expectation of generating a return.

Step 2: Detailed Explanation:
- Post Office: Post offices in many countries, including India, offer various government-backed savings and investment schemes like National Savings Certificates (NSC), Kisan Vikas Patra (KVP), and Public Provident Fund (PPF). They are a major channel for investment.
- Bank: Banks are primary financial institutions that offer a wide range of investment products such as Fixed Deposits (FDs), Recurring Deposits (RDs), and mutual funds.
- Market: While one invests 'in the market' (e.g., stock market), the term 'market' itself is a broad concept, not a single device or institution like a bank or post office.
Since both Post Offices and Banks are key institutions that provide investment instruments, 'Both (A) and (B)' is the correct answer.

Step 3: Final Answer:
Both the Post Office and the Bank serve as devices or institutions for investment.