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Taxation as a Tool

Which of thes...

Question

Which of these is not a stage of capital formation?

A

Saving

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B

Mobilization of savings

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C

Investment

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D

Consumption

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Solution

The correct option is A Consumption
The 3 stages of capital formation-
1)creation of savings
2)mobilization of savings
2)converting savings into investment
Thus,consumption is not included in capital formation process.

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