Saving is _____

2. helpful for production but not necessary.
4. not useful for production because it decreases consumption.
6. required for production.
8. not useful for production because it is not a resource.
10. not useful for production because savers must be paid interest.

 Banks and other financial institutions _____

2. channel savings directly to producers.
4. are intermediaries between savers and borrowers.
6. move money from borrowers to savers.
8. move money from those who need money to those that have money.
10. serve no purpose in the economy.

 Increased saving today means _____

2. more consumption today and in the future.
4. less consumption today and in the future.
6. more consumption today and less in the future.
8. less consumption today and more in the future.
10. more income today and more consumption in the future.

 If Arnold has a positive rate of time preference, he prefers to _____

2. save now to protect himself from inflation.
4. consume now rather than save.
6. invest in stocks and bonds.
8. invest in education.
10. plan for retirement.

 Interest is a payment for deferred _____

2. taxation.
4. saving.
6. consumption.
8. investment.
10. annuity.