How to find the difference between cash and savings

Question

Basically, I am trying to find what percent savings accounts for in this problem. However, I am stuck on what actually constitutes as "savings."

Question Image Link: https://ibb.co/kJMtNgL

Obviously, savings account balances do, but is there anything else? Do money markets and deposits also count as savings or cash? I am having trouble finding the difference between them.

Thanks in advance.

Answer 1

Hello, I couldn't open the link you provided. However, let's take a look at the difference between savings and cash. Savings is surplus income in bank accounts but it could be saved as cash under the bed. By definition, saving is income minus spending. Savings is national income minus consumption S = ni - c Private savings is income minus consumption. Saving is a flow, a rate of saving per unit time, but savings is a stock as result of saving. Savings in macroeconomics include 1. increase in bank deposits 2. Purchases of securities 3. increased cash holding Savings deposits in banks is an example of M2 Savings ratio is% of income