Financial Assets Have Two Principal Economic Functions

question 5

True/False

Financial assets have two principal economic functions. One function is to transfer funds from those who have surplus funds to invest to those who need funds to invest in tangible assets.

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Definitions:

Pollution Permits

Allowances or credentials issued by governing bodies that enable the holder to emit a specific amount of pollutants over a set time period.

Supply And Demand

The fundamental economic model describing the interaction between the availability of goods (supply) and the desires of those with purchasing power (demand).

Sulfur Dioxide

A colorless gas with a sharp odor, produced by burning sulfur or fossil fuels, and known for its role in causing acid rain.

Tradable Pollution Permits

A strategy utilizing the market to limit pollution, offering economic rewards for lowering the levels of emitted pollutants.