Final answer:
Investment refers to allocating money to generate future income, savings involves setting aside money for future use, speculation involves risky investments for profit, and gambling involves games of chance. In the given scenario, Melissa's monthly deposits in her savings account are categorized as savings.
Step-by-step explanation:
Investment: Investment refers to the allocation of money or resources to an asset or project with the expectation of generating future income or profit. It involves careful analysis and consideration of the expected rate of return, risk, and liquidity.
Savings: Savings involves setting aside a portion of income or money for future use, typically in a safe and easily accessible account. It is done with the intention of building a financial cushion or achieving specific financial goals.
Speculation: Speculation involves making risky investments or bets on the future price movement of assets, such as stocks or commodities, in order to earn profits. It typically involves higher risk and short-term trading strategies.
Gambling: Gambling involves placing bets or wagers on uncertain outcomes, usually in games of chance or luck. It is commonly associated with recreational activities and does not involve the same level of analysis and consideration as investments or savings.
In the given scenario, Melissa's monthly deposits in her savings account can be categorized as savings. She is setting aside money with the goal of utilizing it as a down payment for her new car in the future.