Banking System and Capital Market Questions and Answers for Competitive Exams

Question

Capacity utilization

A Is a measure of the proportional of the existing capital stock used for current production
B Is usually near 100 percent
C Represents the percent of the labour force that is employed
D Rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production

Answer & Explanation

Answer: Option [A]

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