Surprisingly, the Survey is not too concerned about surplus financials savings flowing out from banks to the capital market. _________________________. A concern everywhere now is that as the market appears to be overvalued and is due for a correction. This could lead to significant losses for households that have moved to such riskier avenues to earn higher returns relative to deposit rates which are falling.

Now, these returns are linked to interest rates prevailing in the banking system.

This is interesting because at present, our investment and savings rates are both declining.

Anecdotally, a high current account deficit can create a different set of problem when savings trails investment.

This has been taken to be a positive fallout of demonetisation where funds have been directed to the market.

Surprisingly, the Survey is not too concerned about surplus financials

1.	Surprisingly, the Survey is not too concerned about surplus financials savings flowing out from banks to the capital market. _________________________. A concern everywhere now is that as the market appears to be overvalued and is due for a correction. This could lead to significant losses for households that have moved to such riskier avenues to earn higher returns relative to deposit rates which are falling.
A.	This is interesting because at present, our investment and savings rates are both declining.
B.	Anecdotally, a high current account deficit can create a different set of problem when savings trails investment.
C.	This has been taken to be a positive fallout of demonetisation where funds have been directed to the market.
D.	Now, these returns are linked to interest rates prevailing in the banking system.
E.	None of the above
Answer» D. Now, these returns are linked to interest rates prevailing in the banking system.

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