Financial assets can be distinguished from real assets in that financial assets:
A)are pieces of paper rather than tangible, physical objects.
B)are not intended to provide services like transportation or shelter.
C)have value because they provide their owners with claims to future cash flows.
D)All of the above

Question

Quizplus · Accepted Answer

Financial assets are generally not tangible and are represented by pieces of paper or digital records, such as stocks, bonds, and derivatives. They are not intended to provide services like transportation or shelter like real assets, such as houses or cars. The value of financial assets comes from the claims they provide their owners to future cash flows, such as interest, dividends, or capital gains. Therefore, all the options mentioned in the question are correct.

Financial Assets Can Be Distinguished from Real Assets in That