Real Assets V/s Financial Assets
Individuals when invest for future they maychoose to hold financial assets.
Financial Assets can be viewed as a means bywhich individuals hold their claim on realassets in well developed economies.
Real Assets appear on the asset side of thebalance sheet whereas financial assets appearon both sides of the balance sheet.
When we aggregate over all balance sheets,financial assets will cancel out, leaving only thesum of the real assets as the net wealth of theaggregate economy.