Question

Distinguish between real capital and money capital.

Answer 1

	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.