What is the term used for savings that are utilized to generate income?

The correct term for savings that are utilized to generate income is "investment." Investments involve using funds to purchase assets with the expectation that these assets will generate income or appreciate in value over time. Common forms of investment include stocks, bonds, real estate, and mutual funds. When individuals allocate their savings for investment purposes, they aim for financial growth, which typically involves some degree of risk.

Understanding investments is crucial as they play a significant role in personal finance and wealth-building strategies. Successful investments can lead to passive income, dividends, or capital gains, all of which contribute to a person's financial stability and growth.

In contrast, the other terms may relate to financial concepts but do not specifically refer to the act of using savings to generate income. Expenditure refers to the money spent on goods or services, return describes the profit earned from an investment, and capital generally refers to financial assets or resources used to fund a business or investment. None of these terms capture the intent behind using savings to create income like "investment" does.