What is the definition of investing?

The definition of investing encompasses the commitment of resources, typically money, in order to generate an income or profit over time. The correct response highlights the process of creating capital goods, which is a crucial aspect of investing. Capital goods are the assets that are involved in the production of goods and services, and investing in these assets helps to build and enhance productive capacity.

By allocating resources to create capital goods, individuals and businesses are not only contributing to their own potential for future income but also to the larger economy by facilitating production and innovation. This underscores the importance of investment as a foundational activity in both personal finance and economic growth.

The other options focus on aspects related to financial activities but do not encapsulate the broader definition of investing itself. Eliminating debt pertains to managing liabilities rather than building assets. Buying stocks, while a form of investment, is too narrow and specific; it represents just one type of investment strategy within the overall concept. Transferring assets to others does not inherently imply investment since it lacks the element of generating a return on resources committed.