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saving is like?

saving is like?
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Answer #1

Saving is like an emergency fund that can be used for future consumption purpose . It is considered as a leakage from economy because the money which is saved does not become a part of the money flow in the economy . However, if the people have high access to banks and a banking habit then this saving can be deposited in the bank which can come into the flow in the economy through advancing loans by banks.

In a nutshell savings are your saviour for the rainy days ( emergency situations) .

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