Which of the following are financial assets? Select the two correct answers.(1 point)
Responses
stocks
stocks
bonds
bonds
automobiles
automobiles
real estate
real estate
gold
stocks and bonds
The correct answers are:
1. Stocks
2. Bonds
The two correct answers are stocks and bonds. In order to determine which options are financial assets, we need to understand what financial assets are. Financial assets are instruments or contracts that represent ownership of a claim against an entity or tangible item with a monetary value. They are typically traded on financial markets and can be bought or sold.
To answer this question, we need to identify the options that fit this definition.
1. Stocks: Stocks represent ownership in a company and can be bought and sold on stock exchanges. They are considered financial assets.
2. Bonds: Bonds are debt securities issued by governments, municipalities, or corporations to raise capital. They represent a loan to the issuer and can be bought or sold. Bonds are also considered financial assets.
3. Automobiles: Automobiles are physical assets, but they are not considered financial assets since they do not represent ownership or a contract with a monetary value.
4. Real Estate: Real estate represents physical property such as land and buildings. While real estate can have significant monetary value, it is not considered a financial asset since it is not a contract or ownership claim.
5. Gold: Gold is considered a physical asset or commodity, but it is not classified as a financial asset since it does not represent ownership or a contractual claim.
Therefore, the correct answers are stocks and bonds as they meet the criteria of being financial assets.