Podcast
Questions and Answers
What is the reason for saving according to the text?
What is the reason for saving according to the text?
- To have immediate possession of savings for future consumption
- To trade off present consumption for a higher level of future consumption (correct)
- To retrieve savings from the mattress when needed
- To bury money in the backyard for future use
What is the main purpose of investment as per the text?
What is the main purpose of investment as per the text?
- To consume more than current income
- To have immediate possession of savings
- To make savings increase over time (correct)
- To defer consumption
What do people tend to do when their current income exceeds current consumption desires?
What do people tend to do when their current income exceeds current consumption desires?
- Save the excess (correct)
- Invest the excess
- Borrow more money
- Spend the excess immediately
What happens when people retrieve their savings from the mattress or backyard according to the text?
What happens when people retrieve their savings from the mattress or backyard according to the text?
What do those who give up immediate possession of savings expect according to the text?
What do those who give up immediate possession of savings expect according to the text?
What is the reason for saving according to the text?
What is the reason for saving according to the text?
What do people tend to do when their current income exceeds current consumption desires?
What do people tend to do when their current income exceeds current consumption desires?
What happens when people retrieve their savings from the mattress or backyard according to the text?
What happens when people retrieve their savings from the mattress or backyard according to the text?
What do those who give up immediate possession of savings expect according to the text?
What do those who give up immediate possession of savings expect according to the text?
What is investment according to the text?
What is investment according to the text?
