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Savings is a deferred expenditure. It can not assist in capital formation unless invested into assets that assist in production. The production thus assisted through investment results in satisfaction of needs and increased economic activity. Thus the ultimate aim of investment is increased economic activity.

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10y ago
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6mo ago

The effects of savings and investments can be positive and advantageous. Saving money allows individuals to build up a financial cushion and be prepared for unexpected expenses. Investments, on the other hand, can generate additional income and help individuals grow their wealth over time. Both savings and investments contribute to financial security and can lead to long-term financial stability.

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Q: What are the effects of savings and investments?
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