The meaning of saving and its role in financial market.

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Answer 1

Question

Chapter 31, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

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Students have asked these similar questions

Exercise 3 The production function of a firm is described by the following equation Q=10,000-3L2 where L stands for the units of labour. a) Draw a graph for this equation. Use the quantity produced in the y-axis, and the units of labour in the x-axis. b) What is the maximum production level? c) How many units of labour are needed at that point? d) Provide one reference with you answer.

Exercise 1 Consider the market supply curve which passes through the intercept and from which the market equilibrium data is known, this is, the price and quantity of equilibrium PE=50 and QE=2000. Considering those two points, find the equation of the supply. Draw a graph of this line. Provide one reference with your answer. Exercise 2 Considering the previous supply line, determine if the following demand function corresponds to the market demand equilibrium stated above. QD=3000-2p.

Consider the market supply curve which passes through the intercept and from which the marketequilibrium data is known, this is, the price and quantity of equilibrium PE=50 and QE=2000.a. Considering those two points, find the equation of the supply. b. Draw a graph of this line.

Answer 2

Question

Chapter 31, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

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Answer 3

Question

Chapter 31, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 31, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 31, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

Answer 6

Chapter 31, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.

Economics Concept Introduction

Savings:

Saving is the income which is not spent out of earnings or income. Savings can be made to become financially stronger.

Answer 7

Chapter 31, Problem 1E

To determine

To explain:

The meaning of saving and its role in financial market.

Answer 8

Expert Solution & Answer

Explanation of Solution

Saving is the income which is not spent out of earnings or income. For example, Mr. P deposits $100 as his savings in the saving account in bank. This is left unspent and is called savings.

Savings done by household are considered an important source for further investment by business and government. Saving gives interest to household which is an earning for them.

Savings play a major role in financial market. There is a flow of income from savers to investment. When an individual saves some amount in bank, bank gives interest on it. Some percentage of saving is kept by bank as reserve, rest amount is lent to investors who demand capital. This is called investment.