Which situation best illustrates the process of capital formation?

A newly school question and answer inquired students to claim what they ponder is the most crucial important element for a student to do if they wanted to accomplish success. One which response stood out from the rest was practice. Persons who definitely successful do not become successful by being born. They work hard and perseverance their lives to succeeding. This is how you can fulfill your goals. in the following paragraphs are one of the answer and question example that you can potentially work with to practice and develop your understanding and also give you insights that will assist you to keep up your study in school.

Question:

Which situation best illustrates the process of capital formation?

A. An accountant tries to avoid spending money whenever possible.
B. An engineer uses part of her salary each month to invest in
stocks.
C. A banker takes out a low-interest loan to buy a new car.
D. A farmer greatly increases his income by selling crops overseas.

Answer:

The situation that best illustrates the process of capital formation is that an engineer uses part of her salary each month to invest in stocks.

What is capital formation?

Capital Formation is characterized as the portion of a country’s present output and imports that is not used or transferred during the reporting period, but instead added to its stock of capital goods.

Total capital formation can be divided into several categories. In the formation of Gross Fixed Capital, An engineer uses part of her salary each month to invest in stocks, is best describes the process of capital formation.

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Therefore, option B is correct.

To learn more about capital formation, refer to:

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From the answer and question examples above, hopefully, they are able to help the student resolve the question they had been looking for and take notice of each and every step stated in the answer above. Then could certainly carry out some sharing in a group discussion and also learning with the classmate regarding the topic, so another student also take up some enlightenment and still keeps up the school learning.

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