Income Determines Savings Potential Steps:

• Identify savings as disposable income after expenses.
• Recognize that higher income increases funds available for saving.
• Evaluate how other factors influence but don't primarily drive savings volume.
• Conclude income as the core determinant based on economic principles.

Why A is correct:

• Savings equals income minus consumption (S = Y - C), so family income directly sets the maximum possible savings amount.

Why the others are wrong:

• B: Taxation reduces disposable income but doesn't create savings without sufficient income first.
• C: Inflation erodes purchasing power of savings but doesn't limit the initial amount saved.
• D: Bank reliability affects saving security, not the quantity a family can afford to save.

Final answer: A