How do personal savings contribute to the economy? (1 point)

Question

How do personal savings contribute to the economy? (1 point)

They increase the amount of money banks can invest in stocks and bonds.
They increase the amount of money banks can loan to individuals and businesses.
They allow consumers to invest in different areas of the economy.
They allow consumers to get advice from banks on how to keep track of their money.

I think B

Answer 1

You are correct. Personal savings contribute to the economy by increasing the amount of money banks can loan to individuals and businesses. This increases the availability of credit, which can stimulate economic growth and investment.

Answer 2

You are correct. Personal savings contribute to the economy by increasing the amount of money banks can loan to individuals and businesses (option B). When individuals save money, it increases the pool of funds available for lending. Banks then use these deposits to issue loans to individuals and businesses, helping them to finance investments, purchase goods and services, and grow their businesses. This increased lending activity stimulates economic growth by increasing spending, creating job opportunities, and driving overall economic development.

How do personal savings contribute to the economy? (1 point)

Yes, B.

You are correct. Personal savings contribute to the economy by increasing the amount of money banks can loan to individuals and businesses. This increases the availability of credit, which can stimulate economic growth and investment.