3. Savings and Investing

People only save money when they are unable to get the funds they need through borrowing.

• True

• False

Some people save money that they do not intend to spend on themselves.

• True

• False

When people save money it reduces the amount they need to borrow.

• True

• False

A savings plan ensures an individual will achieve financial goals.

• True

• False

The main factor that usually determines the amount of an individual's disposable income is:

• how old they are

• what job they do

• where they live

• whether they have a family or not

When individuals ? money they do so with the hope or expectation that there will be a financial gain.

Simply ? money provides very little potential for the generation of income.

Investing money can generate an income, or bring about other ? gains.

If you are a shareholder, you would expect to receive a share of the profits in the form of a ? every 6 or 12 months.

Shares can be a ? investment.