Answer – In economics, capital refers to a broad category of financial and physical assets used by individuals, businesses, or governments to generate wealth.

Explanation:

Capital is typically categorized into:

• Financial capital: This includes money and financial assets that individuals, businesses, and governments use for investment and operational purposes.
  • Example: Investment Banks such as Goldman Sachs, Morgan Stanley; mutual funds companies including Vanguard and Fidelity.
• Physical capital: It refers to tangible assets such as machinery, equipment, factories, infrastructure, vehicles, and real estate used in the production of goods and services.
• Human capital: Human capital represents the skills, knowledge, and expertise of humans that contribute to their productivity and earning potential. It includes college degrees (education), training, and experience. 
• Social capital: Social capital relates to the networks, relationships, and social connections that have economic value.
• Natural capital: It encompasses natural resources and ecosystems that provide essential inputs for economic activities. This includes land, water, minerals, and ecological services. 
  • Example: A river that supplies water for agriculture and hydroelectric power

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