Savings and Investment - PowerPoint PPT Presentation

Loading...

PPT – Savings and Investment PowerPoint presentation | free to view - id: 1b608f-ODIyM



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Savings and Investment

Description:

Interest rates. Taxation policy. Stage of life. Discussion Question: ... Mortgage principal payments. Sources of Investment. 2. Business savings: ... – PowerPoint PPT presentation

Number of Views:576
Avg rating:3.0/5.0
Slides: 11
Provided by: serv327
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Savings and Investment


1
SavingsandInvestment
2
Investment
  • IMPORTANT BECAUSE
  • Adds to stock of capital
  • Replaces old / obsolete capital stock
  • Increases productivity
  • Improves international competitiveness

3
Investment
  • SOURCES
  • Personal savings
  • Business savings
  • Foreign savings

4
Sources of Investment
  • 1. Personal savings
  • Personal disposable incomeNOT spent on
    consumption

Savings
PersonalDisposableIncome
Consumption
Taxes
TotalPersonalIncome
5
Sources of Investment
  • 1. Personal Savings determined by
  • Disposable Income
  • Consumer confidence
  • Household assets
  • Consumer debt
  • Interest rates
  • Taxation policy
  • Stage of life

6
Discussion Question
  • In small groups, discuss how each of the
    following factors affect personal savings
  • Disposable Income
  • Consumer confidence
  • Household assets
  • Consumer debt
  • Interest rates
  • Taxation policy
  • Stage of life

7
Sources of Investment
  • Personal Savings invested in
  • Bank deposits
  • GICs (guaranteed investment certificates)
  • Stocks, bonds, mutual funds
  • ? directly to businesses
  • Pension fund contributions
  • Mortgage principal payments

8
Sources of Investment
  • 2. Business savings
  • also known as Retained Earnings
  • Profits retained in a business after all
    expenses, taxes, and dividends have been paid

9
Sources of Investment
  • 2. Business savings

10
Sources of Investment
  • 3. Foreign savings
  • Importing investment
  • Includes individual investors and foreign
    businesses
  • Foreign direct investment
About PowerShow.com