Question

What is the result of the capital formation process?
A. A consumer spends capital to acquire goods or real estate.
B. A financial planner creates a high-risk plan for investing capital.
C. An investor increases the amount of capital he or she controls.
O D. A bank makes capital available to a variety of customers.

Answer 1

Answer:

C

Explanation:

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Answer 2

The result of the capital formation process is an investor increases the amount of capital he or she controls. The correct option is C.

What is capital formation?

Capital formation is increasing the capital by increasing the savings, investment in assets and savings, and investing money in a way that increases the stock of money.

So, the capital formation process is increasing the capital which he or she controls.

Thus, the correct option is C. An investor increases the amount of capital he or she controls.

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