An example of "real" capital is
A)shares in a corporation.
B)a firm's balance in a bank account.
C)a firm's computer systems.
D)corporate bonds.
E)a firm's retained earnings.

Question

Quizplus · Accepted Answer

Real capital refers to physical assets that are used to produce goods and services, such as buildings, machinery, and equipment. The firm's computer systems would be considered real capital, as they are physical assets that are used in the production process. The other options are not examples of real capital: A) shares in a corporation are financial assets, B) a firm's balance in a bank account is financial capital, D) corporate bonds are financial assets, and E) retained earnings are not physical assets, but rather a part of the company's equity.

An Example of "Real" Capital Is