INVESTMENTS
11th Edition
ISBN: 9781260689488
Author: Bodie
Publisher: MCG
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Question
Chapter 1, Problem 17PS
Summary Introduction
To Determine: The reasons for financial assets showing up as a component of household wealth, but not of national wealth and the reason for financial assets to be important for the material well-being of an economy.
Introduction: The goods and services are produced by the national assets of an economy. The financial assets are intangible assets that comparatively more liquid in nature than tangible assets.
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Why do financial assets show up as a component of household wealth, but not of national wealth? Why do financial assets still matter for the material well-being of an economy?
How do financial institutions benefit the overall economy?
How would economic transactions between suppliers of funds (e.g., households) and users of funds (e.g., corporations) occur in a world without financial institutions?
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