Retention of risk and reduced consumption
Gifting and accumulation
Spending and accumulation
Postponement of consumption and parting with liquidity
✅ The correct answer is D.
Postponement of consumption and parting with liquidity are involved in a savings proposition.
Postponement of consumption: an allocation of resources between present and future consumption.
Parting with liquidity (or ready purchasing power) in exchange for less liquid assets. For instance, purchase of a life insurance policy implies exchanging money for a contract which is less liquid.
Postponement of consumption and parting with liquidity are involved in a savings proposition.
Postponement of consumption: an allocation of resources between present and future consumption.
Parting with liquidity (or ready purchasing power) in exchange for less liquid assets. For instance, purchase of a life insurance policy implies exchanging money for a contract which is less liquid.