Question

1) ______ is when an asset increases in value

A) Depreciation
B) Appreciation
C) Inflation
D) Purchasing Power

Answer 1

The correct answer is B) Appreciation

Explanation:

In economics, Appreciation is an increase in the value of an asset over the passage of time. This increase can occur for various reasons, including increased demand or weakening supply in a market, or as a result of changes in inflation or may be in interest rates. For example The value of a house usually increases with time. Therefore its value is said to appreciate. Appreciation is the opposite of depreciation, which is a decrease over time.