Gross Domestic Capital Formation can be financed through 1 Domestic savings 2 External borrowings 3 ...........

Economic Affairs Growth and Indicators

Download Solution PDF

Gross Domestic Capital Formation can be financed through?

1. Domestic savings.

2. External borrowings.

3. Provision for depreciation.

Select the correct answer using the codes given below:

1 only

1 and 2 only

1 and 3 only

1, 2 and 3

छोटे Courses बड़े Results

Master Growth and Indicators

Prepare through Micro-courses

Try Now

Explanation:

All the statements are correct.
Gross fixed capital formation (GFCF) is a macroeconomic concept used in official national accounts such as the United Nations System of National Accounts (UNSNA), National Income and Product Accounts (NIPA) and the European System of Accounts (ESA).
Statistically it measures the value of acquisitions of new or existing fixed assets by the business sector, governments and "pure" households (excluding their unincorporated enterprises) less disposals of fixed assets. GFCF is a component of the expenditure on gross domestic product (GDP), and thus shows something about how much of the new value added in the economy is invested rather than consumed.