Savings are disposable income not spent for consumer goods.

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the NOCTI Financial and Investment Planning Test. Study with flashcards and multiple choice questions, each with detailed hints and explanations. Set yourself up for success!

Multiple Choice

Savings are disposable income not spent for consumer goods.

Explanation:
Saving is the portion of what households have after taxes that isn’t spent on goods and services. Disposable income is what’s left after-tax income, and consumption is the part used for buying goods. So savings = disposable income minus consumption, i.e., disposable income not spent on consumer goods. The other descriptions refer to spending on goods, transfer payments, or gross income before taxes, none of which define savings.

Saving is the portion of what households have after taxes that isn’t spent on goods and services. Disposable income is what’s left after-tax income, and consumption is the part used for buying goods. So savings = disposable income minus consumption, i.e., disposable income not spent on consumer goods. The other descriptions refer to spending on goods, transfer payments, or gross income before taxes, none of which define savings.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy