Which of the following is NOT an example of fixed capital?

Correct option is D

The correct answer is Money in hand

Fixed capital refers to assets that are used for a long period in production, like buildings, machinery, tools, and equipment. These assets help in the production process and are not meant for resale.

Information Booster:-

• ​ Simple tools: These are tools that are used for production and are not meant for resale, so they are considered fixed capital.
•  Buildings: Buildings used for production purposes are considered fixed capital because they are long-term assets.
  
•  Sophisticated machines: These machines are used in the production process for a long time and are thus considered fixed capital.
•  Money in hand: This is not fixed capital. Money in hand is liquid and is used for transactions, not for long-term production purposes.