BANKING AFFAIRS

Detailed explanation-1: -The part of income not spent is called saving. We know, income in economics is the summation of consumption expenditure and saving. Thus the part of the income which is not spent for consumption expenditure, it is known as saving.

Detailed explanation-2: -Saving is the portion of income not spent on current expenditures. In other words, it is the money set aside for future use and not spent immediately.

Detailed explanation-3: -Disposable Income. A Marker of Economy Health.

Detailed explanation-4: -(i) There is direct relationship between income and saving, i.e., if income increases, saving also increases but by less than increase in income. It means as income increases, proportion of income saved increases (because proportion of income consumed decreases). (ii) At lower level of income, saving is negative.

Detailed explanation-5: -Savings refers to the money that a person has left over after they subtract out their consumer spending from their disposable income over a given time period. Savings, therefore, represents a net surplus of funds for an individual or household after all expenses and obligations have been paid.