Which One of the Following Is a Capital Asset

question 29

Multiple Choice

Which one of the following is a capital asset?

• A)automobile held by car dealer for sale
• B)automobile used for personal purposes
• C)automobile used in taxpayer's trade or business
• D)B and C only

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Definitions:

Exchange Rate

The value of a currency expressed in the amount of another currency that can be traded for it.

Trade Surplus

A situation where a country's exports exceed its imports, leading to a net inflow of domestic currency from foreign markets.

Trade Deficit

A situation where a country's imports exceed its exports during a specific time period.

Absolute Advantage

The capability of a body to generate a product or offer a service with greater efficiency than its rivals, utilizing an identical quantity of resources.