At its heart capitalism is a financial system Every entity in the economy whether an individual a ho...........

English ( Master) Paragraph Completion

At its heart, capitalism is a financial system. Every entity in the economy, whether an individual, a household, a business, or a state institution faces monetary constraints in its operations and must constantly balance the exigencies of cash inflows and cash outflows. Thus, money flows, including the accumulation of debt and the acquisition of financial assets, are the very lifeblood of the system. ___________________________. While highly useful, such an approach often misses or obscures underlying monetary relations.

Despite this fact, most of our understanding of the macro-economy is based on the national accounts system which foregrounds current expenditure by various sectors.

Given such lacunae, an alternative approach was originally suggested in 1947 by Morris Copeland, who promoted the Flow of Funds (FoF) account approach.

These accounts examine flows across six sectors — households, government, private corporations, banks, other financial institutions (OFIs) and the Rest of the World.

Despite the availability of the data, there have been very few attempts to provide a description of the monetary flows in the economy.

Despite this India is moving from a bank-based to a market-based financial system.

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Explanation:

Correct Answer is (a).As we can observe the whole paragraph talks about the Macroeconomic approach and its drawbacks, option A is the only sentence among the given ones that fits the blank most appropriately.
Though the word ‘approach’ in the sentence following the blank and in the sentence given as option B indicates a possible link at the first glance, the usage of the word ‘lacunae’ in option B confirms that it must follow the last sentence of the given paragraph as the last sentence of the paragraph specifies what the macroeconomic approach lacks.
Clearly, option A is the correct answer.