Which of the following is the most important domestic source of planned finance ?
Options:
A .  Profit from public sector units
B .  Balance of current revenue
C .  Domestic private savings
D .  Additional taxation
Answer: Option C Answer: (c) Domestic saving primarily consists of three components, viz., household sector saving, private corporate sector saving and public sector saving. Household sector saving constitutes the largest portion of gross domestic saving. Household sector saving comprises saving in financial assets and saving in physical assets. Household saving in financial assets (net) is estimated as gross financial assets net of financial liabilities, while household saving in physical assets is the net addition to physical assets by the households. Gross financial savings of the household sector includes the saving in the form of currency, bank deposits, non-bank deposits, saving in life insurance fund, saving in provident and pension fund, claims on government, shares and debentures inclusive of investment in mutual funds and net trade.
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