Financial assets have two principal economic functions. One function is to transfer funds from those who have surplus funds to invest to those who need funds to invest in tangible assets.

Question

Quizplus · Accepted Answer

This statement is true. Financial assets allow for the transfer of funds from those who have excess funds to those who need them for investments in tangible assets such as buildings, equipment, or inventory. This process is essential to the functioning of financial markets and helps promote economic growth.

Financial Assets Have Two Principal Economic Functions