Saving and Insurance

Answer

Saving is the amount of income carried forward to the future after meeting current expenditure. It is the surplus of income over consumption.

Answer

Saving = Income – Consumption. This means income left after spending on current needs is called saving.

Answer

Saving is calculated over the whole accounting year because some expenses, such as fees and tax, are yearly. Monthly figures can give a wrong picture of actual saving.

Answer

Mr. X's total income was Rs.1,86,000, total expenditure was Rs.1,81,000, and saving was Rs.5,000. The saving is found by 1,86,000 – 1,81,000 = Rs.5,000.

Answer

Saving increases future income because the saved amount remains available for later use. It also acts as security in emergencies, such as illness or temporary loss of work.

Answer

A family saving box is an informal way of saving small amounts at home. It is unsafe from theft, money remains idle until the box is opened, and no interest is earned.

Answer

Post offices and banks keep money in a secure place, provide pass books, and pay interest on savings. They also help use idle money for useful economic activities.

Answer

It is a formal saving account where an individual can deposit money in a post office. A minimum deposit of Rs.50 is needed to open the account, and a minimum balance of Rs.50 must remain after withdra…