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Question
Distinguish between real capital and money capital.
Solution
| Real capital | Money capital | |
| 1. | Real capital means capital goods such as properties, machines, plants, etc. | Money capital, on the other hand, means money (or cash in hand) that producers use to purchase tools, equipment, and other goods needed for production. |
| 2. | Real capital has a greater impact on national output as it directly helps in increasing production. | Money capital actually helps in purchasing real capital. |
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