What type of financial activity is classified as investment?

Investment is classified as the activity that involves spending on capital equipment and new housing because it aims to create future wealth or generate income. This type of financial activity not only provides immediate benefits but also promotes growth by acquiring assets that can appreciate over time or produce revenue, such as a rental property or machinery that boosts production.

The other activities listed, while related to financial management, do not fall under investment. Budgeting monthly expenses focuses on organizing and managing existing resources rather than acquiring new wealth. Buying groceries is a necessary expenditure for daily living rather than an investment aimed at long-term financial gain. Saving money in a bank account, while beneficial for security and earning interest, generally represents a more passive form of saving rather than actively investing in growth or capital assets. Thus, spending on capital equipment and new housing stands out as the clear example of investment activity.