It can also start in a pension trust fund or even the general fund . The last lesson in the chapter was a brief discussion of investment strategies . With long term activities it is prudent have a good idea not only of what to acquire and but how to save and pay for it. The higher the return you want the greater the risk of losing all or much of your investment. Real assets include gold, property, and other physical assets such as silver, paintings, baseball cards, etc.
Financial assets are instruments or agreements to pay and be paid back.
Governments, often by law, can be required to be prudent if not very prudent in their investment strategies. All in all, governments borrow, borrow for long term obligations such as buildings, promise future benefits, and try to invest to pay for all the long term items. Unfortunately, reporting on these important activities is not always as clear and complete as it could be.