When we aggregate overall balance sheets financial assets will cancel out

When we aggregate overall balance sheets financial

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an asset, but the firm’s issuance of that claim is the firm’s liability. When we aggregate overall balance sheets, financial assets will cancel out, leaving only the sum of real assets as the net wealth of the aggregate economy. 3. Financial assets are created and destroyed in the ordinary course of doing business. E.g. when a loan is paid off, both the creditor’s claim and the debtor’s obligation cease to exist. In contrast, real assets are destroyed only by accident or by wearing out over time. 4. What is investment? Discuss the difference between investment,gambling and speculation. 5.Discuss the environments of investment.
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