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What does the term "capital formation" refer to?
  • a)
    The process of increasing foreign investment.
  • b)
    The process of increasing the money supply in an economy.
  • c)
    The process of increasing the productive capacity of an economy by adding to the stock of capital goods.
  • d)
    The process of increasing government spending on infrastructure.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What does the term "capital formation" refer to?a)The proces...
Capital formation refers to the process of increasing the productive capacity of an economy by adding to the stock of capital goods, such as machinery, equipment, and infrastructure. It involves the transfer of savings from households and governments to the business sector to fuel economic expansion.
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What does the term "capital formation" refer to?a)The process of increasing foreign investment.b)The process of increasing the money supply in an economy.c)The process of increasing the productive capacity of an economy by adding to the stock of capital goods.d)The process of increasing government spending on infrastructure.Correct answer is option 'C'. Can you explain this answer?
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What does the term "capital formation" refer to?a)The process of increasing foreign investment.b)The process of increasing the money supply in an economy.c)The process of increasing the productive capacity of an economy by adding to the stock of capital goods.d)The process of increasing government spending on infrastructure.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What does the term "capital formation" refer to?a)The process of increasing foreign investment.b)The process of increasing the money supply in an economy.c)The process of increasing the productive capacity of an economy by adding to the stock of capital goods.d)The process of increasing government spending on infrastructure.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What does the term "capital formation" refer to?a)The process of increasing foreign investment.b)The process of increasing the money supply in an economy.c)The process of increasing the productive capacity of an economy by adding to the stock of capital goods.d)The process of increasing government spending on infrastructure.Correct answer is option 'C'. Can you explain this answer?.
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