Saving is a ________ concept and savings are a ________ concept.
A) stock; stock
B) flow; flow
C) flow; stock
D) stock; flow

Question

Quizplus · Accepted Answer

Saving represents a flow of income that is not immediately consumed, hence it is a flow concept. However, savings accumulate over time and can be viewed as a stock concept. Thus, savings are considered as a stock of wealth that has been accumulated over time. Therefore, choice C is the best answer as it correctly identifies saving as a flow concept and savings as a stock concept.

Saving Is a ________ Concept and Savings Are a ________

Saving Is a Concept and Savings Are a