An individual has ₹ 5000 as his monthly income. He spends ₹ 4000 on the purchase of goods and services to satisfy him and his family's needs every month. In this way he saves ₹ 1000 every month. He keeps his saving idle in his house every month. Will his savings be termed as capital formation? Give reason in support of your answer.

Question

His savings will not be termed as capital formation because savings has been kept idle. They would have been termed as c...

Accepted Answer

His savings will not be termed as capital formation because savings has been kept idle. They would have been termed as c...