The terms "saving" and "savings" differ in that
A) saving is a stock, and savings are a flow.
B) saving always exceeds savings.
C) savings are a stock, and saving is a flow.
D) savings can be negative, but saving cannot.

Question

Quizplus · Accepted Answer

"Saving" refers to the act of setting aside money or assets for future use, which is a flow concept as it occurs over time. "Savings," on the other hand, refers to the actual amount of money or assets that have been saved and accumulated, which is a stock concept as it is a snapshot of a specific moment in time. Therefore, choice C correctly identifies that "savings" are a stock, and "saving" is a flow. Choices A and B are incorrect because they do not accurately describe the concepts of saving and savings, and choice D is incorrect because savings can be negative (meaning that more money has been spent than saved), while saving cannot be negative as it refers to the act of setting aside and not spending money.

The Terms "Saving" and "Savings" Differ in That