What best defines an investment?

An investment is best defined as a financial holding for expected appreciation. This means that when individuals or institutions invest their money, they are typically seeking to increase its value over time. The core concept of investing is to allocate resources, usually money, towards a venture or an asset with the anticipation that it will generate a return in the future. This could be through appreciation in value (like stocks or real estate), income generation (like bonds or dividend-paying stocks), or a combination of both.

The other choices do not capture the essence of what an investment truly is. For instance, money spent with no return expectation does not align with the fundamental purpose of investing, which involves the anticipation of growth or returns. Instant liquidation refers to cash or assets that can be quickly converted to cash without loss of value, but it doesn't inherently indicate an investment's goal or purpose. Similarly, cash reserves kept for emergencies serve a different function, focusing on liquidity and immediate access rather than growth or appreciation over time. Thus, defining an investment as a financial holding for expected appreciation accurately reflects the overarching objective of investing.