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Standard XII
Economics
Money Supply
The process o...
Question
The process of capital formation occurs in three stages.
A
True
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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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