Financial capital

Money capital or financial capital represents unbound funds of a company like bank deposits, bonds or cash. Other forms of capital are physical capital ( physical capital ) and human capital. Money capital can be used from the perspective of the individual monetary capital owner at any time, for example, for investment and are thus converted into physical capital.

Marx's use

In Marx, the capital passes through the circulation process various forms, it makes various metamorphoses:

• G money capital
• W capital goods
• P Productive capital
• W ' capital goods
• G ' money capital

This circulation process of capital Marx describes with the following formula:

G money is invested in goods W. The goods W are consumed in the production process P as means of production and manpower to create new goods W '. The points in the formula are designed to represent that here the circulation process of commodities is interrupted. In the production process is the value of goods added. Thus, the value of the goods is W ' higher than the value of W and W the goods ' sold for the equivalent of money in G'.

Reference

The term financial capital is also often used in an alternative, evaluative meaning ( see Article financial capital)

The German Bundesbank uses the term in a different importance to delineate the money supply. Thus, according to the Eurosystem's definition of money capital include time deposits with maturity of more than two years, deposits redeemable at notice of over three months, debt securities with a maturity of over two years, and the capital and reserves Montären financial institutions.