Concept explainers
(a)
To determine:
The effect on the stocks of real assets of economy if housing price falls by 10%.
Introduction:
Real assets are the type of assets which are commonly present as physical assets such as any type of infrastructures, precious metals, machineries, or agricultural lands etc. Financial assets are the type of assets that contains cash or any transactional instrument from which cash can be easily collected.
(b)
To determine:
The effect of the fall of housing prices on individuals has to be determined.
Introduction:
Real assets are the type of assets which are commonly present as physical assets such as any type of infrastructures, precious metals, machineries, or agricultural lands etc. Financial assets are the type of assets that contains cash or any transactional instrument from which cash can be easily collected.
(c)
To determine:
Reconciliation between the two answers mentioned in part (a) and (b).
Introduction:
Real assets are the type of assets which are commonly present as physical assets such as any type of infrastructures, precious metals, machineries, or agricultural lands etc. Financial assets are the type of assets that contains cash or any transactional instrument from which cash can be easily collected.
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