Question
Real assets in the economy include all but which one of the following?
Common stock
Land
Consumer durables
Buildings
Common stock
Land
Consumer durables
Buildings
Ask by Chandler Bowers. in the United States
Feb 04,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
Common stock is not a real asset.
Solution
Real assets are tangible assets that have intrinsic value due to their substance and properties. These include:
- Land: Physical property, real estate.
- Consumer durables: Long-lasting goods used by consumers, such as appliances and vehicles.
- Buildings: Structures used for residential, commercial, or industrial purposes.
Common stock, on the other hand, is considered a financial asset rather than a real asset. It represents ownership in a company and a claim on part of the company’s profits but does not have physical substance.
Answer: Common stock
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
error msg
Explain 
Simplify this solution The Deep Dive
Common stock is not considered a real asset; it falls under the category of financial assets. Real assets, on the other hand, are tangible and physical items such as land, buildings, and consumer durables that can be used or consumed. Investing in real assets can provide a hedge against inflation and can be a solid foundation for a diversified portfolio!
Understanding the distinction between real assets and financial assets is crucial for effective investing. Real assets tend to hold intrinsic value because they represent physical goods, while financial assets derive their value from a contractual claim. Always consider the benefits and risks associated with both asset types in your investment strategy!
