Question

Various stages in capital formation​

Answer 1

Answer:

Three Stages in Capital Formation:

Therefore, in a modern free enterprise economy, the process of capital formation consists of the following three stages:

(a) Creation of Savings:

(b) Mobilization of Savings:

(c) Investment of Savings:

Answer 2

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Three Stages in Capital Formation:

Therefore, in a modern free enterprise economy, the process of capital formation consists of the following three stages:

• (a) Creation of Savings:

• (b) Mobilization of Savings:

• (c) Investment of Savings:

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