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28. PHYSICAL (REAL) CAPITAL
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FINANCIAL
(MONEY) CAPITAL
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1.
Meaning
Physical
capital is the stock or produced goods that contribute to the production of
other goods and services.
2.
Examples
It
consists of machines, tools, factories, railways lines, transport equipments,
and so on.
3.
Production of goods
It
directly facilitates production of goods.
4.
Types of Capital
It
includes both fixed and variable capital.
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Financial Capital is the stock of money
which is available for investment and productive purpose.
It consists of money, bank deposits,
bonds, shares, etc.
It indirectly facilitates production of goods.
It is a variable or working capital.
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PHYSICAL (REAL) CAPITAL FINANCIAL (MONEY) CAPITAL
