Question

The saving-borrowing-investing cycle generally begins with consumer borrowing to fund their purchases and for seed capital. They then use this capital to invest in their future, which then allows them to bring in more money. They then are able to use income to pay off their loans and to save.

Answer 1

The statements above are TRUE.
The saving borrowing investing cycle is used by people to achieve financial stability. They cycle is initiated when an individual borrow a sum of money to invest in a business. As time goes on the business begins to yield profits. Part of the profits will be used to repay the borrowed loan. After the repayment, the profits can then be reinvested into the business to generate more profits.