Financial Assets Like Stocks and Bonds Have Value Because

question 52

Multiple Choice

Financial assets like stocks and bonds have value because:

• A)they represent ownership of companies.
• B)people are proud to own them.
• C)they provide tangible benefits as do real assets.
• D)they give their owners command over future cash flows.

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Definitions:

Money

Any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

Issued

Issued generally refers to the official distribution or release of items such as documents, currency, or securities by an authoritative entity.

Declared

Stated or made known officially or publicly.

Unit Of Account

A standard numerical monetary unit of measurement of the market value of goods, services, and other transactions.