Savings Is Defined as

question 58

Multiple Choice

Savings is defined as

• A)cash balances in savings accounts.
• B)accumulated wealth.
• C)the portion of income not spent on current consumption.
• D)current consumption minus current debt.

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Definitions:

Market Value

The current price at which an asset or a company can be bought or sold in the open market.

Value Weighted Index

An index in which each constituent is weighted according to its market value, reflecting the performance of the market based on total capitalization.

Share Weighted Index

A stock market index in which each company is weighted according to the total value of its outstanding shares.

Price Weighted Index

A stock market index in which each company's stock influences the index in proportion to its price per share.