Question

Financial assets A. directly contribute to the country's productive capacity. B. indirectly contribute to the country's productive capacity. C. contribute to the country's productive capacity both directly and indirectly. D. do not contribute to the country's productive capacity either directly or indirectly. E. are of no value to anyone.

Answer 1

Answer:

B) indirectly contribute to the country's productive capacity.

Explanation:

Financial assets are non-physical assets whose value is determined by contractual rights, e.g. cash, stocks, bonds, bank CDs, etc.

Financial assets indirectly contribute to the country's productive capacity since they allow individuals and businesses to invest in other private firms and government securities. This increases the amount that private firms and government can invest or spend.

Answer 2

Answer:

B. indirectly contribute to the country's productive capacity.

Explanation:

These are liquid assets as the economic resources or ownership can be converted into something of value such as cash.

Cash, stocks, bonds, certificate of deposit, mutual funds, and bank deposits are all are examples of financial assets.

Financial assets indirectly contribute to the country's productive capacity because these assets permit individuals to invest in firms and governments. This in turn allows firms and governments to increase productive capacity.