Domestic financial assets are not a part of national wealth because
A)assets to one party are liabilities to other parties.
B)they are not included in the national product accounts.
C)they have no productivity capacity.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Domestic financial assets represent claims or debts to other parties within the same economy. Therefore, while they may have value to the holder of the asset, they equally represent liabilities to someone else. This makes it difficult to quantify their true value as a measure of national wealth. In addition, while financial assets can generate income through interest or dividends, they do not have any inherent productivity capacity like physical assets such as land or factories. Therefore, they are not a reliable measure of a nation's wealth.

Domestic Financial Assets Are Not a Part of National Wealth