1.

Explain four factors which affect the creation of saving in country.

Answer»

Factor affecting the creation of saving in country.

  • Interest rates: Higher interest rates will encourage people to save more.

  • Availability of appropriate savings schemes: With more options to save money people will be attracted to save more

  • Advertising of/knowledge about what is available at financial institutions

  • Confidence/trust in financial institutions

  • Size of real disposable income: Disposable income is the income left after paying taxes. Thus more money left in pockets will encourage people to save more.



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