Explain the Distinction Between a Real Transaction and a Financial

question 22

Essay

Explain the distinction between a real transaction and a financial transaction (giving examples of each)and explain why for most real transactions,there is a financial transaction that mirrors it.

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Definitions:

Long-Term Loans

Financial obligations that are due for repayment in a period extending beyond one year.

Credit Unions

Member-owned financial cooperatives that provide traditional banking services and typically offer higher interest rates on savings and lower rates on loans.