ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets.

Detailed explanation-2: -A financial instrument is a real or virtual document representing a legal agreement involving any kind of monetary value. Financial instruments may be divided into two types: cash instruments and derivative instruments.

Detailed explanation-3: -Financial assets, also referred to as financial instruments or securities, are intangible assets. They are often used to finance the ownership of tangible assets as equipments and real estate.

Detailed explanation-4: -financial asset a contractual claim to something of value; modern economies have four main types of financial assets: bank deposits, stocks, bonds, and loans.

Detailed explanation-5: -Deposits, stocks, bonds, notes, currencies, and other instruments that possess value and give rise to claims, liabilities, or equity investment. Financial assets include bank loans, direct investments, and official private holdings of debt and equity securities and other instruments.