Which of the following is not included in the stages of capital format...
The stages of capital formation are the various steps involved in the process of creating and accumulating capital. These stages are crucial for the economic growth and development of a country. The stages of capital formation include the following:
1. Savings: This is the first stage of capital formation. Individuals and households save a part of their income for future use, which is then used for investment purposes.
2. Mobilisation of Savings: In this stage, the savings collected from individuals and households are mobilized and accumulated by financial institutions such as banks, mutual funds, insurance companies, etc.
3. Investment: The mobilized savings are then invested in various sectors of the economy, such as infrastructure, real estate, manufacturing, etc. This creates new jobs, increases production and contributes to the growth of the economy.
4. Capital Accumulation: As a result of investment, the economy experiences growth, which leads to an increase in the value of assets owned by individuals and businesses. This leads to an increase in capital accumulation.
Out of the given options, option 'B' - Mobilisation of Income is not included in the stages of capital formation. Mobilisation of Income refers to the process of channelizing income from various sources towards investment. Though this is an important step in the process of capital formation, it is not included in the stages of capital formation.