The Term Capital, as Used in Macroeconomics, Refers to

question 215

Multiple Choice

The term capital, as used in macroeconomics, refers to

• A) the amount of money that someone can invest in a new venture.
• B) the amount of money a firm can raise in the stock market.
• C) physical capital.
• D) All of the above answers are correct.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividend priority.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation.

Dividend

A payment made by a corporation to its shareholders, usually derived from the company’s profits.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with dividends that are paid out before those of common shareholders.