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What is the correct difference between saving and investment?

Answer and explanation

Correct answer: Saving means setting money aside for safety, while investment means putting it to work with the aim of growth

Saving means setting aside part of current income for future use, usually with emphasis on safety and liquidity. Investment means committing money to an asset or activity, such as securities or a business, with the expectation of earning a return or increasing value. Investment can involve risk, so it requires informed decision-making. Therefore, option A correctly distinguishes the two; the other options confuse finance with spending or make unreasonable claims.

Related tags

SavingInvestmentPersonal-FinanceConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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