Explain the financial system terms definitions, Game Theory

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Explain the financial system terms definitions.

The Financial System Definitions:

Wealth

It is sum of Current Savings and Accumulated Savings

Financial asset

Paper claim which entitles the buyer to a future claim by the seller.

Physical asset

Claim onto a tangible object (as home and car, etc.)

Liability

A need to pay income into the future (as Car loan and mortgage etc.)

Transaction costs

Expenses of putting mutually and executing a deal

Financial risk

Uncertainty regarding future outcomes that involve financial losses and gains.


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