Wealth, Capital, Income & Money
Posted On April 21, 2020
Goods which have value are termed as wealth.
Capital is that part of wealth which is used for further production of wealth. Furniture used in the home is wealth but given on rent is capital. Thus all capital is wealth but all wealth is not capital.
Wealth is a stock and income is a flow. Income is the earning from wealth. The shares of a company are wealth but the dividend received on them is income.
Money consists of coins and currency notes. Money is the liquid form of wealth. All money is wealth but all wealth is not money.