Financial capital refers to funds that are used to purchase capital goods, such as machinery, equipment, and buildings used in the production of other goods and services. It is distinct from physical capital, which refers to the tangible assets themselves. A, C, and D are incorrect as they do not accurately describe financial capital.

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Financial Capital Is

Question 301

Multiple Choice

Financial capital is

A) the collection of stock and bond exchanges around the country.
B) funds used to purchase capital goods.
C) the foreign exchange market.
D) assets of financial institutions.

Correct Answer: