how do personal savings contribute to the economy?
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 form banks on how to help track of their money
Personal savings contribute to the economy in several ways.
1. They increase the amount of money banks can invest in stocks and bonds, which can help support businesses and create economic growth.
2. They increase the amount of money banks can loan to individuals and businesses, which can help stimulate consumption and investment in the economy.
3. Personal savings allow consumers to invest in different areas of the economy, such as real estate, start-up businesses, or various financial instruments, which can help create jobs and drive economic activity.
4. Personal savings also allow consumers to get advice from banks on how to keep track of their money, manage their finances effectively, and make sound investment decisions, which can ultimately contribute to financial stability and growth in the economy.
Overall, personal savings play a crucial role in supporting economic development and prosperity by providing individuals with financial security, investment opportunities, and access to credit.