ECONOMICS
FINANCIAL MARKETS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investment
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Savings
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diversification
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return
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Detailed explanation-1: -Savings refers to the part of the income which is not spent on the consumption of goods and services in the economy.
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: -Generally, income is directly related to consumption and savings and so an increase in income will lead to an increase in consumption and savings, and a decline in income levels will lead to a decline in consumption and savings level. An increase in income leads to an increase in marginal propensity to consume.
Detailed explanation-4: -In macroeconomics, income= consumption + savings. Therefore when consumption expenditure is equal to income, savings is zero.