Is Each of the Following Situations an Example of Savings

question 63

Essay

Is each of the following situations an example of savings, investment, or neither? In each case explain your choice.
(a) A savings and loan association lends money for the purchase of "junk" (not backed) bonds.
(b) John's income is $25,000 per year; $22,000 is spent on consumer goods and the remaining money is used purchase stock in the local electric company.
(c) Just before retirement a couple sells their shares of Pacific Bell stock and puts the proceeds in a bank savings account.
(d) The city of Los Angeles rebuilds highways after an earthquake.
(e) In order to improve the income earning potential of current welfare recipients, the federal government increases the size of income transfers.

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Definitions:

Japanese Students

Students from Japan, often mentioned in cross-cultural studies comparing education systems or cognitive processes.

American Students

Refers to learners enrolled in educational institutions within the United States, ranging from primary to tertiary levels.

Two-Dimensional Interpretation

The process of understanding or interpreting information on a flat surface, considering height and width but not depth.

Three-Dimensional

Describing an object or space that has width, height, and depth, thus giving it a sense of volume.