Ans. 1. Generally, people do not use their entire income for consumption. They save a part of their income for consumption. They save a part of their income as a precaution against contingencies.
2. The amount saved can be utilized to face unexpected expenditures due to sickness, accidents, etc. Thus, saving may be used in future for unseen contingencies.
2. The amount saved can be utilized to face unexpected expenditures due to sickness, accidents, etc. Thus, saving may be used in future for unseen contingencies.
