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www.investopedia.com Real assets: Physical or identifiable assets such as gold, land, equipment, patents, etc. They are the opposite of a financial asset. Real assets tend to be most desirable during periods of high inflation. Financial assets: An asset that derives value because of a contractual claim. Stocks, bonds, bank deposits, and the like are all examples of financial assets. Unlike land and property--which are tangible, physical assets--financial assets do not necessarily have physical worth.

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15y ago
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12y ago
An Asset per say is something that has a monetary value and can be sold for money. The terms real asset and financial asset mean the same thing and can be used interchangeably as long as the asset under consideration has a positive value.

For ex: Let us say I have a gold bar of 100 grams weight, it is an asset, a financial asset. And since gold has a value (in terms of dollars/currency) it is a real asset.

Any asset that does not have any value as of the current time period cannot be considered a real asset.

for ex: let us say, you owe me $1000 which you intend on repaying in October of 2012, as of today it is a financial asset but is not a real asset because as of today this asset is worthless and has a value only next year.
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Q: What are the smilarities between real and financial asset?
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