Saving take place only when there are opportunities for their investment. If the people have the savings as cash, it will be consumed will not be saved. But if the savings are deposited with the bank, it will be out of sight. Since the deposited amount is out of sight, the people think to consume it late. This attitude of the people becomes the cause of savings. In other words, the banks provide the motivation to the people save.
No comments:
Post a Comment