Question

The process of capital formation occurs in three stages.

• A. True
• B. False

Answer 1

The correct option is A True

The 3 stages of capital formation are as follows;

1)creation of savings;increase in the volume of savings

2)mobilization of saving;credit and financial mechanism so that available savings are utilized by private and public sectors

3)investment of savings:the act of investment by which resources are used for production of capital goods.