Which of the following is considered a financial asset?

A standard savings account is considered a financial asset because it represents monetary value that can be readily converted into cash or used for transactions. Financial assets are typically defined as assets that derive value from a contractual claim, such as bank accounts, stocks, bonds, and other instruments.

In the case of a savings account, it not only holds cash but also earns interest over time, contributing to wealth accumulation. It’s a liquid asset, meaning it can be quickly accessed without significant loss of value, making it essential for managing personal finances.

Other options, while they may have value or provide economic benefit in certain contexts, do not meet the criteria of financial assets. A personal vehicle is a physical asset, a leisure vacation plan is an expense rather than a financial investment, and a hobby that generates income is considered more of a business activity or intangible asset rather than a straightforward financial asset.