Chapter P4, Problem 1RQ

To determine

The difference between saving and investing.

Explanation of Solution

People save money according to their needs especially in a bank account so that they can get minimal interest on their savings. People do this as it is safe for them to keep money in a bank and they can withdraw when they want to use those savings such as to buy a car, or house, to accomplish any goal, or to deal with any emergency.

Whereas, investing is different from savings which means investing savings or income from where people can get a higher return or grow in the business. Mainly people invest in stocks, property, and shares of a mutual fund.

Economics Concept Introduction

Introduction: People use money for different purposes. Some people invest money from where they can get higher profits in the future and some save money for their future needs.