The major factors which influence the level of savings are the level of:
A) income and the life stage of the individual saver
B) income, economic expectations, cyclical influence, and the life stage of the individual saver
C) income, interest rates, and the life stage cycle of the individual saver
D) income and interest rates

Question

Quizplus · Accepted Answer

The level of savings is influenced by multiple factors including the level of income, economic expectations (which affect how people view their future financial security and thus their propensity to save or spend), cyclical influences (which refer to the state of the economy, such as recession or boom periods, affecting people's ability to save), and the life stage of the individual saver (as people's saving habits typically change with age and responsibilities).

The Major Factors Which Influence the Level of Savings Are