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Question

The process of capital formation occurs in three stages.

A
True
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B
False
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Solution

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.

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