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CLAT Sample Paper CLAT Sample Paper-6

  • question_answer
    Which of the following is/are the component (s) of Gross Domestic Capital Formation (GDCF)?
    I. Gross domestic savings
    II. Net capital inflow
    III. Direct foreign investment
    Which of the above statements is/are correct?

    A)  Only I          

    B)  Only II

    C)  Only III        

    D)  I and II

    Correct Answer: C

    Solution :

    GFCF, refers to the net increase in physical assets (investment minus disposals) within the measurement period. It does not account for the consumption (depreciation) of fixed capital and also does not include land purchases, it is a component of expenditure approach to calculating GDP.


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