Each of the Following Statements About Capital Are Correct Except

question 106

Multiple Choice

Each of the following statements about capital are correct except

• A)capital is a "man"-made good used to produce other goods and services.
• B)japan has more capital than any other country in the world.
• C)office buildings and shopping malls are examples of capital.
• D)capital is considered a passive resource.

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Definitions:

Implicit Interest

The interest rate that is not explicitly stated but inferred from the difference between the purchase price and the total payments to be made in a financing transaction.

Zero-Coupon Bond

A type of bond that does not pay periodic interest and is sold at a discount from its face value, with the full face value being paid at maturity.

Implicit Interest

The interest represented by the difference between the cash price of a product and the amount financed over time, not directly stated as an interest rate.

Face Value

The nominal or dollar value of a security stated by the issuer, which is the amount paid back to the holder at maturity.