Final answer:
The correct term is d) Investment interest expense, which is the interest paid on loans used to finance investments.
Step-by-step explanation:
The term used to denote interest incurred on loans used to acquire investments is d) Investment interest expense. Investment interest expense is a financial term that refers to the cost of borrowing money to invest in securities or other types of investments. This is a critical concept for both individual investors and businesses involved in financing their investment activities.
Understanding investment interest expense is vital as it affects the net return on investments and can be deductible on tax filings, depending on jurisdiction and specific tax laws. For instance, if an investor has a stock portfolio and borrows funds to expand that portfolio, any interest paid on that borrowed money can be considered as investment interest expense. It aligns with the theme of financial capital cost and the expected returns on investments that businesses or individuals anticipate when investing, which we can see discussed in the units relevant to your question.