Economics B A-Level
Capital allocation
What Capital allocation means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Capital allocation
Check what you remember
Read the wording for your board, then hide it and explain Capital allocation in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Directing pooled resources to productive uses, such as loans for investment or consumption, so that idle funds are used efficiently.
Topics that use Capital allocation
- The role of the financial sector (Pearson Edexcel A-Level)
Related terms
- Credit rating agencies
- Financial intermediation
- International trade
- Liquidity
- Medium of exchange
- Payment systems
- Saving and borrowing
- Systemic stability
Using Capital allocation in the exam
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