Which statement is TRUE regarding financial capital? The supply of financial capital increases when risk increases. It is not an economic resource, but it is used by firms to gain access to resources needed for production. It is the return to investment in physical capital. It is an important resource used in the production process of goods and services.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 6CQ
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Which statement is TRUE regarding financial capital?

 
Which statement is TRUE regarding financial capital?
The supply of financial capital increases when risk increases.
It is not an economic resource, but it is used by firms to gain access to resources needed for production.
It is the return to investment in physical capital.
It is an important resource used in the production process of goods and services.
Transcribed Image Text:Which statement is TRUE regarding financial capital? The supply of financial capital increases when risk increases. It is not an economic resource, but it is used by firms to gain access to resources needed for production. It is the return to investment in physical capital. It is an important resource used in the production process of goods and services.
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