Which Statement Is TRUE Regarding Financial Capital

question 249

Multiple Choice

Which statement is TRUE regarding financial capital?

• A) It is an important resource used in the production process of goods and services.
• B) It is the return to investment in physical capital.
• C) It is not an economic resource, but it is used by firms to gain access to resources needed for production.
• D) The supply of financial capital increases when risk increases.

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Definitions:

Voltage Drop

The reduction in voltage across a component or conductor in an electrical circuit, caused by the flow of current through the resistance or impedance of the component or conductor.

Series RL Circuit

An electrical circuit composed of resistors (R) and inductors (L) connected in series, characterized by the resistance and inductive reactance that influence the circuit's total impedance.

Inductive Reactance

The opposition that inductors present to alternating current, due to the magnetic field created around it, measured in Ohms.

True Power

The actual power in watts consumed or produced by an electrical device, distinct from reactive or apparent power.