Reference > The New Dictionary of Cultural Literacy > 18. Business and Economics
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  The New Dictionary of Cultural Literacy, Third Edition.  2002.
 
capital formation
 
 
The creation of capital. For example, capital is created when banks lend the money they hold in savings accounts to firms that use the money to purchase machinery.  1
 
 
The New Dictionary of Cultural Literacy, Third Edition. Edited by E.D. Hirsch, Jr., Joseph F. Kett, and James Trefil. Copyright © 2002 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

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