Real Money Meaning In Finance For Dummies
Capital.
Answered 6 years ago Author has 792 answers and 1.8M answer views. The demand for money is the desired holding of financial assets in the form of money, that is, cash or bank deposits. Real money balances is the real value of the amount of money held by a person, household or firm or the amount in circulation in the economy or the real value of money balances, their purchasing power in terms of.
Capital is money that is used to generate income or make an investment. For example, the money you use to buy shares of a mutual fund is capital that you're investing in the fund.
Companies raise capital from investors by selling stocks and bonds and use the money to expand, make acquisitions, or otherwise build the business.
The term capital markets refers to the physical and electronic environments where this capital is raised, either through public offerings or private placements.