The correct answer is:
1. Nonphysical assets that get their value from contractual claims.
Financial assets are assets that derive their value from a contractual claim. These can include stocks, bonds, certificates of deposit (CDs), and other securities. These assets represent ownership of an entity (such as shares of a company's stock) or a promise to repay borrowed funds (like a bond).
2. Type of stock that can be traded.
Stocks are financial assets that represent ownership in a company. They can be traded on stock exchanges, allowing investors to buy and sell shares of a company.
These options do not fully describe financial assets:
- A service a bank provides is not a financial asset. It is a service offered by the bank.
- A market where prices are continuously rising is not a description of financial assets. Financial assets themselves can be traded in various markets, but the rising prices in a market do not define the assets themselves.
