A savings ratio expresses the
A) percentage of gross income saved.
B) ability to cover immediate debt when there is an interruption in income.
C) percentage of after-tax income saved.
D) percentage of tax-deferred income earned annually.
E) none of the above.

Question

Quizplus · Accepted Answer

A savings ratio expresses the percentage of after-tax income saved. This means it is the proportion of income that is set aside as savings after taxes and other essential expenses have been deducted.

A Savings Ratio Expresses the