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In the video, the demonstration includes options for saving files, such as different file types and auto saved settings. For Office 365 users, version history is discussed. When creating a new workbook, it is given a default name like book1 or book2.xlsx. The first step is to save the workbook by going to the file tab and clicking save or using the shortcut Ctrl S. When saving for the first time, you choose where to save the workbook and give it a name. The file type can be chosen from various options, with xlsx being the default. For workbooks with macros, saving as xlsm is recommended. Other file types like binary or csv are also available with the option to browse for more.