creation of capital assets through mobilization of saving
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Explanation:
(i) Creation of Savings: It is the first step in the process of capital formation. It is saving which are transformed into capital. If there is no saving, there cannot be any capital formation, even if all other conditions are favourable for capital formation. Savings are done by households and it depends on their income and willingness to save.
(ii) Mobilization of Savings: If savings are kept in the form of idle cash at home, they will not lead to capital formation.
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