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Cash is considered a real asset because it holds tangible value and can be readily used for transactions.

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5mo ago

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What does cap rate mean in real estate?

cap rate is the ratio between the grid operating income Note that a real estateappraisal in the U.S. uses net operating income of the asset, because it does not frankly affect the cash generated by the benefit.


What is the current cash price for a bushel of millet?

I'm sorry, but I cannot provide real-time data, including current cash prices for commodities like millet. To find the latest price, I recommend checking financial news websites, commodity exchange platforms, or agricultural market reports.


What is the most valuable asset in a time of economic crisis?

According to Stansberry's eBook it is Farmland!!


Why did real money demand rise much more than real GDP?

Real money demand often rises more than real GDP due to factors like increased transaction needs and heightened precautionary motives among individuals and businesses. During periods of economic uncertainty or inflationary expectations, people tend to hold more cash as a safeguard against potential financial instability. Additionally, financial innovation and the growth of electronic payments can lead to a greater demand for liquidity, further amplifying the divergence between real money demand and GDP growth.


How is real estate considered an investment?

Real estate is a commodity that people "invest" money in. Investment by definition is the "laying out money or capital in an enterprise with the expectation of profit". With respect to real estate investors pay for the ownership rights in real property with the expectation of achieving a profit. Profits can be obtained in numerous ways with real estate: appreciation, capitalization rates on rentals, cash flow properties, or improving the condition of a property for pennies on the dollar and "flipping" or reselling the asset for a profit. In addition, real estate is an investment that through the loan process allows investors to leverage the bank's money. Where else can you put little to no money down and be able to utilize what is arguably most peoples single largest asset. Therefore, real estate is an investment that can generate tremendous returns. Look at Donald Trump. As with all investments, investing in real estate has significant risks associated with it and should a tremendous amount of due diligence should be performed and/or hiring a professional is recommended before putting your money at risk in a highly volatile arena. If you need additional information you can contact me at http://www.southcountyhomes.com or http://www.morganhillhomes.com for more on real estate and investment strategies and information.

Related Questions

Is cash a financial asset or a real asset?

financial-current asset


Is cash vault a financial asset or a real asset?

real asset real asset


Is college education a real or financial asset?

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Is inventory a real or financial asset?

Inventory is a real asset for business for which company use in earning revenue for business.


Is customer goodwill a real or financial asset?

no


What are the smilarities between real and financial asset?

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.


What is the difference between real asset and financial aseet?

fair and ethics


Is cash account real account?

yes cash account is a real account cause it wll not come under persanal account ( consist of bank and peoples account) and not a nominal account( consist of incomes and expenses)


What is considered assets in a financial portfolio?

Assets in a financial portfolio are investments or items of value that can potentially generate income or appreciate in value, such as stocks, bonds, real estate, and cash.


Is life insurance considered equity for a company shareholder?

Corporately owned, cash value life insurance is "real property", and as such is a corporate asset, just like any other corporate asset. Does this constitue "equity"? I think it does. Rjbeeg


What is the difference between a real asset and a financial asset?

A real asset is a tangible asset like gold or real estate. You can hold it or place your hand on it. It has intrinsic value in and of itself. A financial asset is not tangible. Instead, its existence is "represented by evidence of its existence such as a paper certificate, like money, a savings passbook, a stock certificate, or a bond. The paper in money has no intrinsic value. Its value is derived by virtue of what it represents.


With examples explain the difference between real assets and financial assets?

Real asset: These are used to produce the Firm's product and services. They include Tangible assets such as;MachineryFactoriesVehiclesOffices.Furthermore, real asset includes intangible assets such as;Technical knowledge (intellectual property IP)TrademarksPatents.Financial asset: The firm finances it's investments in real asset by issuing financial assets in the debt market for investors. A share of stock is financial asset which has a value as a claim on the firm's real asset and the income those assets will produce. A bank loan is a financial assetFinancial market: Where stocks, bonds security's are traded or change hands. Investor (shareholder): Who lend the money to the issuer in expectation of profit on investment).Edited by Naren