Personal Savings Ratio

Question 1

What is it?

Answer 1

A ratio that examines the relationship between:

Personal sector savings

And

Total personal dispensable income

Minus

Compulsory deductions e.g. Tax

Question 2

Fluctuates over time because…

Answer 2

Of underlying economic and social developments in a country

Question 3

In the uk, the main use of available funds each year has been the ongoing…

Answer 3

High level of investment in LIFE ASSURANCE AND PENSION FUNDS

Question 4

Does the uk personal sector prefer primary or secondary claims?

Answer 4

Secondary claims via institutions e.g. Life companies

Rather than primary claims in the securities markets