Which of the following is correct?
A)In the national income accounts,investment and private saving refer to the same thing.
B)In a closed economy if national saving is greater than zero,then everyone must be saving.
C)The financial system channels funds from savers to borrowers.
D)People whose consumption exceeds their income are savers.

Question

Quizplus · Accepted Answer

The financial system plays an important role in channelling funds from savers to borrowers, such as banks providing loans to businesses or individuals. This allows savings to be used for investment, which can contribute to economic growth. Options A, B, and D are incorrect as investment and private saving are not the same thing, national saving may not equate to everyone saving, and individuals who consume more than their income are not savers.

Which of the Following Is Correct