Relationship between financial and physical capital, Business Economics

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Question 1:

(a) Discuss the relationship that exists between financial capital and physical capital.

(b) Analyse how a stock-market crash would drive an economy into a recession.

(c) Examine and evaluate the factors that determine the demand for a firm's capital.

Question 2:

(a) Under what circumstances may the value of the Rupee depreciate?

(b) What implications would a depreciation of the Rupee have on the profitability of an organisation involved in foreign trade?

(c) Evaluate the policies that could be used to arrest a continuing depreciation of the Rupee.


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