How do personal savings contribute to the economy?
A The increase the amount of money bank can invest in stock and bonds
B They increase the amount of money banks can loan to individuals and businesses
C They allow consumers to invest in different areas of the economy
D They allow consumers to get advice from bank to keep track of their money
B They increase the amount of money banks can loan to individuals and businesses
Personal savings contribute to the economy by increasing the amount of money available for banks to loan to individuals and businesses. This, in turn, can stimulate economic activity, such as funding new business ventures, expanding existing businesses, or financing major purchases like homes or cars. Personal savings also contribute to overall economic growth by providing stability and security for individuals and families, which can lead to increased consumer confidence and spending.