Crucial Things You Need To Know On Savings



As we all know savings May simply be defined as that part of income which is not Spent.
A saved money constitute a withdrawal from the circular flow of income. 
There are about Three different types of savings, and they include :
(1) Personal savings
(2) Government savings
(3) Corporate savings

  • Personal savings: This is the type of savings kept by a person for personal reasons. 
Government savings: refers to the type of savings kept by a country's government, which they can save through budget surplus and other available means. 

Corporate savings: This refers to the type of savings kept by business organizations and companies, which starts to save when taxes are low or when their profits are high.
The Following Factors Determine Personal Savings.

  1. Government policy
  2. Sense of responsibility 
  3. Presence of financial institution 
  4. Rate of interest 
  5. Size of income, and 
  6. Political stability

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