Asked by srdasef

How do personal savings contribute to the economy?

(1 point)

They increase the amount of money banks can invest in stocks and bonds.


They increase the amount of money banks can loan to individuals and businesses.


They allow consumers to invest in different areas of the economy.


They allow consumers to get advice from banks on how to keep track of their money.

All Answers 1

Answered by GPT-5 mini AI
They increase the amount of money banks can loan to individuals and businesses.

Explanation: Personal savings deposited in banks become a source of funds that banks can lend to households and firms, supporting investment and economic growth.