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A financial asset is a non-physical asset whose value is derived from a contractual claim, such as bank deposits, bonds, and participations in companies' share capital. Financial assets are usually more liquid than tangible assets , such as commodities or real estate.
The balance sheet of a firm records the monetary [2] value of the assets owned by that firm. It covers money and other valuables belonging to an individual or to a business. [1] Total assets can also be called the balance sheet total. Assets can be grouped into two major classes: tangible assets and intangible assets.
The Importance of Current Assets in Financial Planning. Current assets allow companies and investors to assess if a firm can pay off its financial obligations. Companies that cannot keep up with ...
In monetary economics, the demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits rather than investments.It can refer to the demand for money narrowly defined as M1 (directly spendable holdings), or for money in the broader sense of M2 or M3.
Both liquid and fixed assets play vital roles in financial planning. Liquid assets, such as cash reserves, provide a safety net for unexpected expenses, emergencies, or short-term financial needs ...
And in the financial account, assets pertaining to international monetary flows of, for example, business or portfolio investments are noted. [citation needed] Absent changes in official reserves, the current account is the mirror image of the sum of the capital and financial accounts.
Business firms use a financial analysis technique called asset vs. liability management (ALM) to mitigate risk due to a mismatch in their assets and liabilities. A mismatch occurs when assets and ...
Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade". [1] Its concern is thus the interrelation of financial variables, such as share prices, interest rates and exchange rates, as opposed to those concerning ...