PHYSICAL (REAL) CAPITAL FINANCIAL (MONEY) CAPITAL

28. PHYSICAL (REAL) CAPITAL
FINANCIAL (MONEY) CAPITAL
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.



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.