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Question
Mobilisation of savings is an important step in ______.
Options
Credit Creation
Capital Formation
Increasing demand
Decreasing the cost of production
MCQ
Fill in the Blanks
Solution
Mobilisation of savings is an important step in Capital formation.
Explanation:
Mobilisation of savings refers to collecting and channelling individual savings into productive investments. This is a crucial step in capital formation, where saved resources are used to create capital goods like machinery, buildings, and infrastructure that contribute to future production. By mobilizing savings, economies can fund investments that lead to growth and development.
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Significance of Capital Formation
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