Question

Financial assets Group of answer choices

contribute to the country's productive capacity, both directly and indirectly.
directly contribute to the country's productive capacity.
are of no value to anyone.
do not contribute to the country's productive capacity, either directly or indirectly.
indirectly contribute to the country's productive capacity.

Answer 1

indirectly contribute to the country's productive capacity.

Step-by-step explanation:

Financial assets are non physical assets, deriving value from contractual claims. Eg - Bank deposits, Stocks & Bonds etc.

These indirectly contribute to country's productive capacity as : They act as main tools for mobilising funds, savings & investment in Economy. This savings, investment mobilisation enable economy's entrepreneurial sector to raise capital & enhance their & the country's productive capacity.

Example : Companies raising capital from public share issue , borrowing from banks mobilising public household savings.