An Example of "Real" Capital Is

question 24

Multiple Choice

An example of "real" capital is

• A)shares in a corporation.
• B)corporate bonds.
• C)a firm's balance in a bank account.
• D)a firm's computer systems.
• E)a firm's retained earnings.

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Definitions:

General-Obligation Bond

A type of municipal bond that is secured by the full faith and credit of the issuing government, including its taxing power to repay the bondholders.

Russell 2000

A gauge that tracks the performance of around 2000 of the smallest American firms listed in the Russell 3000 Index.

S&P 500

A stock market index tracking the performance of 500 of the largest companies listed on stock exchanges in the United States.

DJIA

Dow Jones Industrial Average, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.