Distinguish between real asset and financial asset?

Real assets are tangible or physical assets that have intrinsic value due to their substance and properties, such as real estate, commodities, and machinery. In contrast, financial assets are intangible assets that derive value from contractual claims, such as stocks, bonds, and bank deposits. While real assets can provide utility and can appreciate in value over time, financial assets primarily generate returns through interest, dividends, or capital gains. Essentially, real assets represent physical ownership, whereas financial assets represent ownership of a claim on future cash flows.