Question:
Which of the following leads to capital formation?
Which of the following leads to capital formation?
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Saving is the key to capital formation because it leads to investment, which drives economic development.
Updated On: Oct 28, 2025
- Consumption
- Exchange
- Saving
- Investment
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The Correct Option is C
Solution and Explanation
Capital formation occurs when savings are invested in the economy. Savings contribute to building capital, which is crucial for economic growth.
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