Which of the Following Is FALSE About Saving

question 47

Multiple Choice

Which of the following is FALSE about saving?

• A) Saving equals wealth minus consumption expenditures.
• B) Saving is the source of funds used to finance investment.
• C) Saving adds to wealth.
• D) Income left after paying taxes can either be consumed or saved.

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Definitions:

Book Value Per Share

A financial metric showing the portion of a company's net asset value attributable to each share of stock.

Total Common Stock

Represents the shares of a company that are owned by shareholders, including both restricted and unrestricted shares.

Total Liabilities

The combined amount of all financial obligations a company owes to external parties, including loans, bonds payable, and accounts payable.

Current Ratio

A financial metric assessing a firm's capacity to settle short-term debts or obligations due within a year, determined by dividing its current assets by its current liabilities.