Finance Problem
1. The wealth of an economy is generated by real assets. The availability of tradable financial
assets has no effect on the wealth of an economy. Do you agree? Why or why not?
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2. A mutual fund company such as Vanguard is a financial intermediary.
a. Give two examples of financial assets created by Vanguard.
b. Why does an institution such as Vanguard create the financial assets in your above example
and not people like you and me?
