Asked by Rebekah Gonzalez on May 14, 2024

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Which of the following represents a real asset?

A) Land
B) Bonds
C) Stocks
D) Both a & c
E) All of the above

Real Asset

Physical or tangible assets such as real estate, commodities, and natural resources that have intrinsic value.

Bonds

Fixed-income investments where an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period of time at a fixed interest rate.

Stocks

Shares of ownership in a company, representing a claim on the company's assets and profits.

  • Distinguish between tangible assets and financial securities.
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Verified Answer

NP
nagasaikiran ponnapalliMay 19, 2024
Final Answer :
A
Explanation :
Land is a tangible asset that can be physically touched and has inherent value based on its location and potential uses. Bonds and stocks are financial assets, representing a claim on future income or ownership in a company, but they are not tangible assets like land.