Which of the following is/are the stages of capital formation?

Creation of savings

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Effective mobilization of savings

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Investment in savings

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All of these

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Solution

The correct option is D All of these
The three stages of capital formation are:-
1) Creation of savings-Collective savings of individuals in an economy leads to creation of savings.
2) Effective mobilization of savings-Savings should be properly allocated to different purposes.
3) Investment in savings-Savings should be properly invested by the economy which will yield better productivity and help to increase the rate of existing capital formation.

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