Examine the following statements pertaining to Gross Fixed Capital Formation (GFCF): Statement A: GFCF is recorded only in secondary and tertiary sectors, as primary sector investment is classified as Intermediate Consumption. Statement B: In India, a significant portion of Household Sector GFCF is dedicated to Construction (Residential Buildings). Statement C: For a commercial bank, an increase in the national GFCF-to-GDP ratio generally signals a decline in systemic Credit Risk due to robust investment. Which of the statements given above are correct?

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Economics · Macroeconomics & Capital Formation

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Only Statement B and Statement C

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