Q. Consider the following statements:
1.Household savings comprise financial and physical savings.
2.Mutual funds and equity have emerged as an important instrument for financial savings in the past few years.
3.While the CPI captures all transactions at first point of bulk sale in the domestic market, the WPI represents the cost of a representative basket of goods and services consumed by an average urban or rural household.
Which of the statements given above are correct?
Answer: A
Notes:
Explanation –
Statement 1 and 2 are correct. Household savings comprise financial and physical savings. Mutual funds and equity emerged as an important instrument for financial savings in the past few years.
Statement 3 is incorrect. While the overall CPI represents the cost of a representative basket of goods and services consumed by an average urban or rural household, the WPI captures all transactions at first point of bulk sale in the domestic market.
Source: The Print
