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Do you consider money as capital?

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Anonymous

15y ago
Updated: 8/18/2019

money is capital

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Wiki User

15y ago

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Why is money not considered capital in economics?

Capital is a physical asset which can be used to produce goods and services. Money is related to capital, in that it can be used to purchase capital, but it is not itself capital. The distinction is important if you consider that money can be created or destroyed through the expansion or contraction of credit, but this does not create or destroy any real capital. Money is capital. Money is the most common form of capital. Raising capital i.e. money for investment is a common practice.


Can you consider money as capital?

No I can not consider money as capital, because it is already linked with market and no one knows how loan market will grow. Any time currency can go downside like rupee is going down against dollar. Yes but property can be a capital.


Do you use capital if you own a company that makes a profit and you spend the extra money to entertain customers?

Yes, you are using capital because you are using money. In this case, you can consider it a business investment.


Why isn't money considered a capital resource?

Money IS a capital resource.


Money used for investments?

capital


Why money is not consider as a factor of a production?

Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.


Why is money considered a capital resource?

BY definition, capital resource means physical money.


Who are the capital market and money market operators?

who are the operators of money market and capital market


Why is human capital considered the best capital?

human capital is consider the best capital bcuz if their will be no human capital so their is no use of other capital also


What is money known as that is used to invest in business?

Money invested in business is called capital


What is a share capital?

This is the sum of money the shareholders pay into which is called the share capital This is the sum of money the shareholders pay into which is called the share capital


What are capital expenditure?

Unfinanced means that the money was not borrowed from anyone. Capital expenditures is money spent on buildings and equipment. Therefore, unfinanced capital expenditures is money spent on buildings and equipment that is not borrowed.