Real assets are necessarily matched by an equal volume of financial claims held somewhere in the financial system.

Question

Quizplus · Accepted Answer

Real assets, like property, plants, and equipment, represent actual physical or tangible assets. Financial claims, such as stocks or bonds, represent claims on future cash flows or ownership but do not necessarily match the volume of real assets in a one-to-one relationship. The value of financial claims can fluctuate independently of the physical quantity of real assets.

Real Assets Are Necessarily Matched by an Equal Volume of Financial