Capital Formation and Investment Group Objective Questions Answers, Group 1 2 2a 4, VAO Group Question

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Capital Formation and Investment

13.

Capital formation undergoes which of the follwoing stages?

A. Creation of saving B. Mobilisation of saving C. Investment of saving D. All the above

Answer : D. All the above

14.

Which of the following is/are correct :

A. All the wealth is not capital B. all the capital is wealth C. reward paid to capital as a factor of production is called interest D. All the above

Answer : D. All the above

15.

Investment on all man made physical assets like buildings and machines are called _______

A. Physical Capital B. Money Capital C. Human Capital D. None of these

Answer : A. Physical Capital

16.

Investment made in the form of monetary instruments is called _______

A. Physical Capital B. Money Capital C. Human Capital D. All the above

Answer : B. Money Capital

17.

Which of the following are Characteristics of Capital:
I. Capital is a passive factor of production
II. Capital is man made
III. Capital is productive
IV. Capital has the highest mobility

A. I and II only B. I,II and III C. III and IV only D. I,II,III and IV

Answer : D. I,II,III and IV

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