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Question

The factor which does not influence the process of capital formation in an economy is


A

Creation of savings

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B

Mobilisation of savings

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C

Investment of savings

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D

Capital of savings

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Solution

The correct option is D

Capital of savings


The factor which does not influence the process of capital formation in an economy is capital of savings. Creation, mobilisation and investment of savings are the three stages which are necessary for capital formation in an economy.


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