Personal savings contribute to the economy primarily by increasing the amount of money banks can loan to individuals and businesses. When individuals save money, those funds can be deposited in banks, which then have more capital to lend. This lending facilitates consumer spending and business investment, which can lead to economic growth.
How do personal savings contribute to the economy? (1 point) Responses They increase the amount of money banks can invest in stocks and bonds. 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 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 invest in different areas of the economy. They allow consumers to get advice from banks on how to keep track of their money.
1 answer