Question

In investments, each type of depreciation is defined by a particular event. Which of the following best describes a depreciation type and an event it's tied to?

Answer 1

Answer:

b. Economic depreciation is often tied to physical deterioration.

Explanation:

Based on the information provided within the question it can be said that the option that best describes this is Economic depreciation is often tied to physical deterioration. This is because physical deterioration refers to the loss of value that an asset has as it ages. Therefore as an asset's value decays this causes economic depreciation as it can no longer buy the same amount of goods and services in the market as before.