ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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amount remaining after current wants and needs have been satisfied
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investment opportunities which yield a high interest rate
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portion of current income not spent on consumption
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purchase of assets with the goal of increasing future income
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Detailed explanation-1: -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.
Detailed explanation-2: -Savings is the portion of current income not spent on consumption. Savings accounts provide an easily accessible place for people to store their money to meet daily living expenses and to have money for emergencies.
Detailed explanation-3: -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-4: -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. Was this answer helpful?
Detailed explanation-5: -Since consumption plus saving is equal to disposable income, the increase in disposable income not consumed is saved. More generally, this link between consumption and saving (S) means that our model of consumption implies a model of saving as well.