BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The more money you save the more you will make
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Saving for a short period of time proves long term investments
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The longer you save your money the more you will make
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Detailed explanation-1: -The time value of money means that a sum of money is worth more now than the same sum of money in the future. The principle of the time value of money means that it can grow only through investing so a delayed investment is a lost opportunity.
Detailed explanation-2: -The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future. The dollar on hand today can be used to invest and earn interest or capital gains.
Detailed explanation-3: -This is because if all the people start saving, the expenditure will go down. Since the current system measures GDP and economic growth based on expenditure, a higher savings rate makes it appear like the economy is not growing. In fact, it may appear like the economy is about to enter a recession.
Detailed explanation-4: -Making more money means you have more money available to save. Saving money means you’re less susceptible to lifestyle inflation and more prepared for emergencies. Both are necessary for optimum financial success.