To commit money to gain a profit or earn interest. Bonds Invest Stocks Banking

The question is asking for the term that describes the act of committing money with the expectation of gaining a profit or earning interest. Let's analyze each option:<br /><br />1. Bonds: Bonds are debt securities, similar to IOUs. When you purchase a bond, you are lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value when it matures. While bonds do earn interest, the act of committing money to gain a profit or earn interest is not limited to bonds alone.<br /><br />2. Invest: Investing refers to the act of committing money (capital) to an endeavor with the expectation of obtaining an additional income or profit. This definition aligns with the question's description, as investing involves committing money with the hope of gaining a profit or earning interest.<br /><br />3. Stocks: Stocks represent ownership in a company and constitute a claim on part of the company’s assets and earnings. There are two main types of stocks: common and preferred. Like bonds, stocks can earn dividends, but again, the act of committing money to gain a profit or earn interest is not limited to stocks alone.<br /><br />4. Banking: Banking refers to the business conducted or services offered by a bank. While banks do offer investment services, the term "banking" itself does not specifically refer to the act of committing money to gain a profit or earn interest.<br /><br />Based on the analysis, the term that best fits the description given in the question is "Invest".