1.

State the interrelationship between consumsavings and investment.

Answer»

Ans :- Saving money, considering current interest rates, could almost be considered storing it for later use. There is nothing wrong with saving money if you want the security of knowing it's there for you when you need it.

Investing is kind of like saving, only there is a risk/profit factor. When you invest your money, you have the possibility of gaining more, sometimes much more. However, you also run the risk of losing some, if not all of your invested money.



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