Solution:
The following are the correct and incorrect options
Correct option: Households used to save and those savings are utilized for investment through the intermediaries like bank. Firms and governments take those funds for their investment acts.
Correct option: Foreigner can invest in the US (suppose foreign direct investment) but can’t save here, since there is difference in currency (suppose a foreigner earns in pond can’t save in US dollar).
Other options are not correct:
Incorrect option: Savings means personal savings, which are not yet kept into a bank.
Incorrect option: such purchases are investments but not savings.
