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.
Frequently asked questions
What is the correct answer to this question?
Saving means setting money aside for safety, while investment means putting it to work with the aim of growth
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
