Photo:2
Photo:3
Photo:4
Photo:5
Photo:6
Photo:2 Photo:3 Photo:4 Photo:5 Photo:6 |
| Interest rates | |||||||||||||||
| 2>
Classical economics posited that interest rates would adjust to equate saving and investment, avoiding a pile-up of inventories (general overproduction). A rise in saving would cause a fall in interest rates, stimulating investment, hence always I=S. But Keynes argued that neither saving nor investment were very responsive to interest rates (i.e., that both were interest inelastic) so that large interest rate changes were needed. Further, it was the demand for and supplies of stocks of money that determined interest rates in the short run. Thus, saving could exceed investment for significant amounts of time, causing a general glut and a recession.
[edit] Tags:Reliable Sources,Challenged,Pension,Deposit Account,Gross National Product,Investment,Classical Economics,General Glut,Interest,Shares,Collective Investment Scheme,Federal Deposit Insurance Corporation,Appreciation,Capital Accumulation,Financial Economics,Financial Education,Frugality,Growth Investing,Index Investing,Investor Profile,Investor Relations,Return On Investment,Socially Responsible Investing,Speculation,Stock Investor,Stoozing,Treasury Security,Value Investing,Categories,Intertemporal Economics,Macroeconomic Aggregates,Personal Finance,Articles Needing Additional References From March 2011,All Articles Needing Additional References,Articles With Limited Geographic Scope From June 2011,Main Page,Contents,Featured Content,Current Events,Random Article, | |||||||||||||||
| Saving in personal finance | 2>
Within personal finance, the act of saving corresponds to nominal preservation of money for future use. A deposit account paying interest is typically used to hold money for future needs, i.e. an emergency fund, to make a capital purchase (car, house, vacation, etc.) or to give to someone else (children, tax bill etc.).
Within personal finance, money used to purchase shares, put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment. This distinction is important as the investment risk can cause a capital loss when an investment is realized, unlike cash saving(s). Cash savings accounts are considered to have minimal risk. In the United States, all banks are required to have deposit insurance, typically issued by the Federal Deposit Insurance Corporation or FDIC. In extreme cases, a bank failure can cause deposits to be lost as it happened at the start of the Great Depression. However, since the FDIC was created, no deposits in the United States have been lost due to a bank failure.
In many instances the terms saving and investment are used interchangeably. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes. To help establish whether an asset is saving(s) or an investment you should ask yourself, "where is my money invested?" If the answer is cash then it is savings, if it is a type of asset which can fluctuate in nominal value then it is investment.
[edit] | Tags: Bibliography | 2>
G. Dell'Amore, "Household Propensity to Save", in A. Mauri (ed.), Mobilization of Household Savings, a Tool for Development, Finafrica, Milan, 1983.
F. Modigliani, "The Role of Intergenerational Transfers and the Life-cycle Saving in the Accumulation of Wealth", Journal of Economic Perspectives, n. 2, 1988.
[edit] | Tags: See also | 2>
Appreciation
Capital accumulation
Dissaving
Financial economics
Financial education
Frugality
Growth investing
Index investing
Investment
Investor profile
Investor relations
Prudence in economics and finance
Return on investment
Socially responsible investing
Speculation
Stock investor
Stoozing
Treasury security
Value investing
Retrieved from "http://en.wikipedia.org/w/index.php?title=Saving&oldid=492109748"
Categories: Intertemporal economicsMacroeconomic aggregatesPersonal financeHidden categories: Articles needing additional references from March 2011All articles needing additional referencesArticles with limited geographic scope from June 2011
Personal tools
Log in / create account
Namespaces
Article
Talk
Variants
Views
Read
Edit
View history
Actions
Search
Navigation
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact Wikipedia
Toolbox
What links here
Related changes
Upload file
Special pages
Permanent link
Cite this page
Print/export
Create a bookDownload as PDFPrintable version
Languages
العربية
Català
Česky
Deutsch
Español
Esperanto
Euskara
Français
Hrvatski
Bahasa Indonesia
Italiano
עברית
မြန်မာဘာသာ
Nederlands
日本語
Português
Русский
Sicilianu
Simple English
Српски / Srpski
Srpskohrvatski / Српскохрватски
Suomi
Svenska
తెలుగు
Türkçe
Українська
Tiếng Việt
中文
This page was last modified on 12 May 2012 at 00:23.
Text is available under the Creative Commons Attribution-ShareAlike License;
additional terms may apply.
See Terms of use for details.
Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.Contact us
Privacy policy
About Wikipedia
Disclaimers
Mobile view
if(window.mw){
mw.loader.state({"site":"loading","user":"ready","user.groups":"ready"});
}
if(window.mw){
mw.loader.load(["mediawiki.user","mediawiki.page.ready","mediawiki.legacy.mwsuggest","ext.gadget.teahouse","ext.vector.collapsibleNav","ext.vector.collapsibleTabs","ext.vector.editWarning","ext.vector.simpleSearch","ext.UserBuckets","ext.articleFeedback.startup","ext.articleFeedbackv5.startup","ext.markAsHelpful","ext.pageTriage.startup"], null, true);
}
| Tags: Reliable Sources,Challenged,Websites related to: Save Money |