A positive contribution to savings must lead to an increase in assets,a decrease in liabilities,or a combination of each.

Question

Quizplus · Accepted Answer

This is because when you have more savings, you can either use it to increase your assets (by investing or purchasing assets such as property or stocks) or to decrease your liabilities (by paying off debt). In both cases, your overall financial position improves.

A Positive Contribution to Savings Must Lead to an Increase