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

Question

Quizplus · Accepted Answer

Real capital refers to physical assets like equipment, buildings, and other infrastructure necessary for production. A firm's computer systems would be an example of real capital. Corporate bonds (B) and shares in a corporation (C) are financial capital. A firm's retained earnings (D) and balance in a bank account (E) are not examples of capital, but rather forms of financing or cash holdings.

An Example of "Real" Capital Is