Saving example sentences
Apart from currency notes and coins, the balance in savings, or current account deposits, held by the public in commercial banks is also considered money since cheques drawn on these accounts are used to settle transactions.For example, as concerned citizens we can do our bit by using public transport systems instead of individual vehicles; switching off electricity when not in use, using power-saving devices and using non-conventional sources of energy.The lack of surplus means that they are unable to obtain capital from their own savings, and have to borrow.Thus, they are able to arrange for the capital for farming from their own savings.The idea is to organise rural poor, in particular women, into small Self Help Groups (SHGs) and pool (collect) their savings.Since poor people hardly have any savings, they borrow.You will not use up this entire extra income but save a certain fraction, say 20 per cent, of it to build up a cushion of savings for the period when you cease to earn income, or for meeting large expenses in future.This may result in lot of savings both to the buyers as well as to the sellers.Thus, some private borrowers will get 'crowded out' of the financial markets as the government claims an increasing share of the economy's total savings.If we change our simple model described above and introduce savings, will it change the principal conclusion that the aggregate estimate of the income of the economy will remain the same whether we decide to calculate it at A, B or C? It turns out that this conclusion does not change in a fundamental way.If government deficits succeed in their goal of raising production, there will be more income and, therefore, more saving.If, instead of holding on to a certain cash balance, you put the money in a savings account in some bank you can earn interest on that money.However, we must note that since private saving, investment and the trade deficit are jointly determined, other factors too must be taken into account.Since consumption is the complement of savings (additional income of the economy is either put into additional savings or used for extra consumption by the people), if we subtract the mps from 1, we get the marginal propensity to consume (mpc), which, in a similar way, is the fraction of total additional income that people use for consumption.Other items include small savings (Post-Office Savings Accounts, National Savings Certificates, etc), provident funds and net receipts obtained from the sale of shares in Public Sector Undertakings.
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