Financial assets Explained in 100 or less

Financial assets Explained in 100 or less

Financial assets are economic assets that are financial instruments. Financial assets consist of claims and, by convention, the gold bullion component of monetary gold. Most financial assets are financial claims arising from contractual relationships entered into when one institutional unit provides funds to another. These contracts are the basis of creditor/debtor relationships through which asset owners acquire unconditional claims on economic resources of other institutional units. The creditor/debtor relationship provides asset and liability dimensions to a financial instrument.