Identify the Correct Statement About Australia's Financial System

question 4

Multiple Choice

Identify the correct statement about Australia's financial system.

• A)The main source of funds is household savings.
• B)Savings can be in the form of deposits and/or investments.
• C)Governments are a source of savings when they have budget surpluses.
• D)Firms are a source of savings when they retain earnings.
• E)All of these.

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Definitions:

Leakages

In economics, it refers to the withdrawal of potential spending from the economy's circular flow, primarily through savings, taxes, and imports.

Household Production

The creation of goods and services by individuals or families within a home environment, not for formal market exchange.

Gross Domestic Product (GDP)

The complete market or financial worth of every finished good and service made within a nation's frontiers in a certain timeframe.

Consumer Price Index (CPI)

A metric that calculates the mean variation over time in the costs incurred by urban buyers for a selection of consumer products and services.