ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: - Savings – income not used for consumption Investment – the use of income today that allows for a future benefit Financial System – all the institutions.

Detailed explanation-2: -What Is Current Income? Current income refers to cash flows that are anticipated in the immediate to short-term. Current income investing is an investing strategy that seeks to identify investments that pay above-average distributions. Common current income sources include dividends and interest payments.

Detailed explanation-3: -Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value. The greater growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff.

Detailed explanation-4: -Capital Accounts: An Overview. The current and capital accounts represent two halves of a nation’s balance of payments. The current account represents a country’s net income over a period of time, while the capital account records the net change of assets and liabilities during a particular year.

Detailed explanation-5: -Dividend and interest payments are the most common sources of current income. Dividend-Dividend income refers to the periodic income distribution to shareholders. Companies pay a dividend on preferred and common stock.