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SAVING
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SAVING INTRODUCTION: Saving is income which is not spent. Saving is equal to the subtraction of consumption from total income, if Y is total income, C is consumption and S is saving so equation will be S=Y-C It is flow which shows how much is saved during a period of time. TYPES OF SAVING: There are many types or ways of saving. 1) Saving can be inform of cash, people can save a piece of their income inform of cash, for their future transactions. This type of saving is leakage as well as injection because if people keep money in their houses, it will cause a leakage from circular flow. ... 2) Saving can be inform of prize certificates, which government is issues. ... In this type, saving is an injection. ... 3) Saving can be in form of purchasing assets, people buy houses or lands, which they buy from their saving. ... Influences on saving: There a lot of factors which effect the saving of a person directly. Which can increase as well as decrease the rate of saving. 1) INCOME: saving mainly depends on the income of an individual, if level of income is so sufficient that cover all the requirements of daily routine.
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Paper Information
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Title: SAVING
Words: 903
Rating: None
Pages: 3.6
submitted by: maqsood
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