Question

Vietnamese religious traditions urge people to save and invest and reinvest to accumulate capital?

a.cultural reasons

b. structural reasons

c.socio- psychological reasons

Answer 1

a) Culture reasons :-Every culture has their own thinking on investing, earning interest, and what establishes a “safe” investment. While these ideological thinking can be challenging for others to understand, they may be incredibly important for us as we start our investing journey. The main thing is determining what cultural investing proposals are positively serving us, and which of them we may need to let go in order to find success in our own life. What we think is a intended and free choice about our money might well be shaped by our history, language and culture

Why do some people save more than others, even if they have similar incomes? The common answer has been that there are idiosyncratic differences between individuals – some of us are frugal, and some are not – while countries vary on things like demographics, credit availability, income suppositions and uncertainty. All this is right. But it might not be the whole right. It’s also possible that our savings behaviour is shaped by cultural factors of which we might not be fully aware.
b ) Structural reasons :- The successful structural reforms and a relatively stable macroeconomic environment are the main reasons for attracting saving and investment and reinvestment.

c) Socio - psychological reasons:-

Many studies showed that some economic and psychological factors are statistically significant related to whether a person had only a savings account or both saving and investing accounts compared to having no saving or investment accounts. Financial management behaviors, regarded subjective norms and the length of a person’s planning horizon are properly related to the likelihood of having a savings account.